The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK ( Insider Monkey) -- Inside information pays. Corporate insiders usually have access to material nonpublic information about their companies. They sometimes trade illegally on such information and make great profits. Some of them were investigated, caught and sent to jail, but there are still many other insiders trading in the gray area and they never get caught.
In fact, insiders do not have to act directly on material nonpublic information to benefit from it. They can delay their purchases if they know negative news is about to be released. On the other hand, ordinary investors who do not have access to inside information will still buy the stock and lose money. As you might have guessed, imitating insider purchases is potentially a very profitable strategy. Academic studies have also shown that insider purchases manage to beat the market on the average.
We are optimistic about CVS. We believe that the company is going to gain additional market shares and continue to be the industry leader. We also see robust revenue and earnings growth in CVS.