A longshot stock gets torched by the DOJ

BY ANDREW GIOVINAZZI

January 19, 2025

Yo Pit Crazies,

Stocks loved the CPI numbers this week as traders got set to close the last week of the Biden Administration. Apparently there was plenty of activity for Pres Biden on the ERA and doing his exit message on the growth of Oligarchs. Funny he chose the last week of his presidency to address these long simmering issues but that is that is politics.

Politics also brings opportunity. As Frank would say, money runs through Washington and the Biden adm added 1000 pages to the Federal Register of laws in the last few weeks. Not one was passed by Congress. The DOJ sues business all the time after they get lobbied by rivals. The battle I did not know I needed still rages on pharmacies.. The opioid epidemic gobbled 5 years with Washington and SAGs suing big pocket pharmacies for filling prescriptions. Now apparently they are trying that again. First CVS Inc (Ticker: CVS) and now one of my Longshot stocks that has just broken out.

Maybe the incoming administration will stop with the frivolous government lawsuits. One can hope.

Turn adversity into opportunity right here.

WalgreensBoots Alliance Inc (Ticker: WBA) drops to $11.80

It is funny how only WBA gets sued and not online pharmacies but online pharmacies are not closing their stores in big cities. WBA is, and just announced closing more stores in San Francisco this week. Cue the DOJ investigation into filling prescriptions. CVS below has been recovering from the news, see below.

CVS 3 Month Chart with 1 day candles

Separating the politics from the business is messy. Big Cities are more poorly run lately forcing retailers to leave. That is bad for the politicians who run them so they can pressure in other ways. WBA has been filling prescriptions for 100 years and I believe they will for 100 more.

Check out here how I will trade it.

To Your Trading Success,