"It's a company I've always liked [but am] waiting for the stock to go down," Cramer said during an exclusive videoconference call for members of his Action Alerts PLUS club for investors.
Cramer already holds CVS in the portfolio that he runs for charity, but said it's "been a tough own" since the stock has mostly fallen of late. Even factoring in Friday's rally, CVS is still down more than 20% from its recent $82.15 intraday peak on Nov. 14.
Cramer said the stock is suffering from "so much headline risk that it may seem like it is not worth it," including:
- Antitrust Concerns. A federal judge recently took the unusual step of attempting to block CVS' $70 billion acquisition of Aetna after the deal had already received antitrust approval and had technically closed.
- Integration Worries. Cramer said that even if the CVS/Aetna merger ultimately goes through, some on Wall Street wonder how well CVS CEO Larry Merlo will do integrating "two gigantic companies with two very different cultures."
- Earnings Jitters. The company recently declined at a conference to provide details about the combined CVS/Aetna's financials, which Cramer said "caused money managers to presume the worst -- that estimates have to come down."
Still, the stockpicker said he's willing to give his CVS investment more time to pay off.
"When I look at the combination of CVS and Aetna, I say I'm willing to wait in part because it is an all-domestic company in the health-care field without a lot of cyclicality, and because it is so despised that when Merlo figures out and lowers expectations ...I think it'll be ready to take off," Cramer said.
"Has it bottomed? I think it's trying to bottom," he said. "I will tell you that [if] this company gets to $60, we will buy more -- and we'll buy more with alacrity."
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