Stock Talk - Deirdre Dennehy, Rockland Trust

Say that tank a gas is still up for grabs if you -- the inside skinny on how you might be of the women. Follow me on Twitter my handle is that very G Armstrong. Right now we are joined by Deirdre Dennehy from Rockland trust. Deirdre welcome to the show are you doing. Great -- -- We we could never seeing -- a nice Irish girl right you know they got -- got to take care the Irish had a Irish co host tonight and -- on the your first stock pick Express Scripts they just made a big acquisition Medco. Some would say that they kind of cut to a monopoly. On the on the news prescription drug marketplace is that why you like this thing -- SRX. They do now. Combined now have the largest share in the pharmacy benefit management they but -- -- only -- -- roughly 35%. Of the US subscriptions. But hardly say it monopoly at eight yet but -- second leg irons eight -- about 25 cents there and and our exit as artists United Healthcare has about 13% share. Though they are going to be the biggest player in the state but it's still a pretty fragmented industry. Is this a bigger Medicare. Drugs say if you're on Medicare indeed is Express Scripts. Correct a lot of Medicare patients these Express Scripts. But it's also used and a lot of employee benefit plan. Individual answered plan that Medicare that's like it definitely going to be a growing portion of there users. When did when did they make the acquisition of Medco. And now last year and a lot of people did not think that it would go through but it just closed last quarter. And it's expected to. There already beginning to combine the two companies -- -- -- -- IC a billion dollars in crop in the next two years. That's a lot of money that -- -- can have a significant impact has their earnings are what about 250 a share. Priced earnings ratios twenty to one so will that lower the PE ratio on the stock. It well that billion dollars and and it is expected to add about 78. Then -- earnings per share by 2014. And I think that the conservative mad men and for every 100 million dollars. Synergies that adds about eight and -- yet. With those -- wired to -- a dividend Deirdre. Well they did issue some debt in order to take any acquisition and make it the most in -- and but they do expect backing down that -- there is next year. And I think. Acquisitions as in. Completely in the and 2014. And so in cash. -- that's. So in terms if you buy today for and I seniority on the -- Rockland trust if you buy today for 52. What do you know why why did you buy what you must have a price target on it significantly higher than 52 dollars a share. Yet we think that within two years back could be trading at seventy dollars and continue to grow over 20% in. I mean -- part geeky and it has about sixteen time or earning. And currently trading -- fourteen times the outward. -- -- So we like. We like the merger. We also like the basic trends in the industry. The pharmaceutical industry and between 8800 billion dollars. In branded pharmaceutical revenues coming off patent. Over the next few years. There was that -- -- it at that. I'm generic drugs are much higher margins that make it about like the processes they let -- and that's really been out there. You're darn right well V8 you also like Comcast and this is a 28 dollars stocks CM CSA is the symbol. What's the attraction to Comcast. I'm I think they cable operators in general has done a great job. In taking share away. Telecom companies including right then and eighteenth tee and their meetings. Huge market share in the high speed Internet -- They spent billions of dollars in capital expenditures about a decade ago be able to bring Internet people. And now the triple play offering cable instruments and phone services. They really a great platforms which racked up. What about day competition would direct TV it looks like DirecTV still growing in taking. Share away from both the cable providers and the the the phone companies telecoms. We're act we do you see what can be negative for contest that that they are. They need to lose video beat -- video cable connections. Some of that is due to lots of markets bear suit you know -- and it's. Satellite guys. Like DirecTV. But a lot of -- is economically related do and we do you that they feel a lot slowing down. And is that Bennett said the satellite operators but they do not have triple play at a. Yet they don't have the Internet it that's frankly they can't provide the Internet service they've figured -- out yet -- that's and you get a dividend at 2% on the staying. Twenty dollar share price now. -- what what's your target on this say if if you body near eight year you're gonna hold it for couple years what you think it's worth two years from now. I'm rethinking -- finale could see. Possibly 37 dollars from the back then -- -- -- but about a 17%. Growth rate and a seventeen. I am PT right now trading at about fourteen and a half and our earnings but -- the discounts to our collaborative. Now I've never heard of this next stock its MetroPCS. The symbol PCS. Six dollar sharp stock what is this. I'm -- number five player in the US wireless Telecom industry rather they focus on prepaid wireless the tension which is -- and the -- Growing segment in our. They target low cost plans. I'm generally have lower income tax cut -- they used it yet days. Flat rate plan and sixty dollars per month and -- that would include late and -- And text messaging. So and this service meant to be it you know sub parts immediate right -- eighteen feet Patton the right might attract a lot of. Do you think somebody's gonna buy them is that the attraction do you think he might get an acquisition premium because it's a small company two billion -- -- -- and that has been rumored. Several times in the last year it's not the reason lightly by the fact that. Of course -- help desk yup -- that many thought about -- the latest rumors that he mobile after the -- think he felt real. Now that's lot of cash on hand mayors in six billion dollars. An outbreak at -- and eat eat eat you out there rumored to be on the outside looking. Effort smaller player and everybody now -- I'm trying to expand their spectrum there. A lot of action out there and -- yet and world now. LTE platform her faster down these are the data and wireless. -- Usually we have to run my producers give me the hook I gotta run but thank you you're a great guest and appreciate your stock picks I'll give that Tariq give those symbols on just minutes stay -- you're listening to the financial exchange.