GO
Loading...

Fast Money in the Future of Medicine

Monday, 16 Aug 2010 | 7:50 PM ET

This week, Fast Money is looking at the future of medicine and identifying breakthrough trends. On Monday, the program focused on the rise of the retail clinic.

Take Gallo's Health Mart, for example, which upon first glance looks like your small town pharmacy out of a Norman Rockwell painting. The own not only greets you by name, but knows your every medication.

"I always tell the customers, my salary depends upon you," said Gary Kaczka, Gallo's Health Mart owner and pharmacist. "I don't answer to anyone else. It's all about customer service and what we do for the customer."

'Take Care Clinics'
Retail clinics are on the rise as consumers seek cheaper care, with the Fast Money team.

In an age of mega drugstore chains and overworked employees, this kind of pharmacy might be a welcome surprise. This unique business model was devised by McKesson , the largest pharmaceutical distributor in the US.

"We saw a way to leverage the collective strength of thousands of independent pharmacies with a common identity that we could provide for them and the business solutions we could provide for them so that they could focus on patient care that they're so well known for," said Tim Canning, senior vice president of McKesson.

Since McKesson launched its franchise in 2006, it has grown from 262 stores to more than 2,600. In 2009, it was ranked highest in customer satisfaction by JD Power and Associates.

Karen Finerman of Metropolitan Capital Advisors thinks the retail stores are good, but said the business is changing. She said mail is cheaper and is more convenient for many people.

---
EDUCATION STOCKS GET AN "F"... FOR NOW

Shares of education stocks traded lower Monday after government data suggests some schools might not qualify for federal loan programs. The confusion caused Strayer Education's stock to trade lower and prompted analyst Bob Wetenhall of RBC Capital Markets to suspend his "outperform" rating.

Stay Out of Education: Analyst
Why investors should stay out of the education sector now, with Bob Wetenhall, analyst at RBC Capital.

Thirty-five percent of all active, accumulative loans must be paid for schools to retain eligibility for the federal student loan program, Wetenhall said. Earlier, Strayer said it would be above 45%, but came in at 25%. The Department of Education hasn't provided additional clarity on what happens to Strayer now, he said, but it seems the educational services provider could be in jeopardy. There is simply not enough data to know what the Education Department is going to do, Wetenhall said.

There is no need to own this group right now, said Joe Terranova of Vitrus Investment Partners. He likened it to "catching a falling knife."



______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our Web site send those e-mails to fastmoney@cnbc.com.

Trader disclosures for Aug. 16, 2010:

Joe Terranova
Terranova owns (AKAM)
Terranova owns (V)
Terranova owns (NRG)
Terranova owns (POT)
Terranova owns (OXY)
Terranova owns (GLD)
Terranova owns (BAX)
Terranova owns (MOS)
Terranova owns (PFE)
Terranova owns (SU)
Terranova owns (XBI)
Terranova owns (GOOG)
Terranova owns (LRCX)
Terranova owns (AXP)
Terranova owns (C)
Terranova owns (GS)
Terranova owns (BMO)
Terranova owns (MSFT)
Terranova owns (QCOM)
Terranova owns (FCX)
Terranova owns (APA)
Terranova is chief market strategist of Virtus Investment Partners, LTD.

Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (DRYS)
Virtus Investment Partners own more than 1% of (EXR)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (XLK)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)

Steve Grasso
Grasso owns (ASTM)
Grasso owns (BA)
Grasso owns (BAC)
Grasso owns (C)
Grasso owns (CSCO)
Grasso owns (JPM)
Grasso owns (LPX)
Grasso owns (MO)
Grasso owns (MOT)
Grasso owns (NDAQ)
Grasso owns (PFE)
Grasso owns (PRST)

Stuart Frankel & Co and it’s partners own (BAX)
Stuart Frankel & Co and it’s partners own (COG)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (DHR)
Stuart Frankel & Co and it’s partners own (DYN)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MERC)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)
Stuart Frankel & Co and it’s partners own (TBT)
Stuart Frankel & Co and it’s partners own (TLM)
Stuart Frankel & Co and it’s partners own (TRV)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners are short (QQQQ)

Karen Finerman
Finerman & Finerman's firm owns (BAC)
Finerman & Finerman's firm owns (CVS)
Finerman’s firm owns (GENZ) call spreads
Finerman’s firm owns (FLIR)
Finerman & Finerman's firm owns (HPQ)
Finerman & Finerman's firm owns (JPM)
Finerman's firm owns (RIMM)
Finerman & Finerman's firm owns (TJX)
Finerman's firm owns (WMT)
Finerman's firm owns (YUM)
Finerman's firm is short (IJR)
Finerman's firm is short (MDY)
Finerman's firm is short (SPY)
Finerman's firm is short (IWM)
Finerman’s firm owns S&P 500 puts
Finerman’s firm owns Russell 2000 puts

Jon Najarian
Jon Najarian owns (CSCO) short puts
Jon Najarian owns (EBAY) short calls
Jon Najarian owns (TJX) short calls
Jon Najarian owns (GIS) calls

Brian Kelly
Accounts managed by Kanundrum Capital own (TLT)
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (JNJ)
Accounts managed by Kanundrum Capital are long Swiss Franc
Accounts managed by Kanundrum Capital own (SLV)
Accounts managed by Kanundrum Capital own (ANDE)
Accounts managed by Kanundrum Capital own (XBI)
Accounts managed by Kanundrum Capital own (RIMM)
Accounts managed by Kanundrum Capital are long U.S. Dollar
Accounts managed by Kanundrum Capital are long Japanese Yen
Accounts managed by Kanundrum Capital are short (IAI)
Accounts managed by Kanundrum Capital are short (RTH)
Accounts managed by Kanundrum Capital are short the U.K. Pound

Anthony Scaramucci
Scaramucci and SkyBridge Capital own (MO)
Scaramucci and SkyBridge Capital own (PFE)
Scaramucci and SkyBridge Capital own (KFT)

Dennis Gartman
Funds managed by Dennis Gartman own gold

Neil Currie
(WMT) is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services are being, or have been, provided.
(WMT) is, or within the past 12 months has been, a client of UBS Securities LLC, and non-investment banking securities-related services are being, or have been, provided.
(WMT) is, or within the past 12 months has been, a client of UBS Securities LLC, and non-securities services are being, or have been, provided.
Within the past 12 months, UBS Securities LLC has received compensation from (WMT), (SWY), (SHLD), (KR)

Bob Wetenhall
RBC Capital Markets Corp. makes a market in the securities of Strayer Education, Inc.

Mike Khouw
Cantor Fitzgerald makes a market in (NTRS)

  Price   Change %Change
MCK
---
STRA
---

Featured

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report