The Motley Fool

Why Catamaran Shares Ran Aground

Although we don’t believe in timing the market or panicking over market movements, we do like to keep an eye on big changes — just in case they’re material to our investing thesis.

What: Shares of pharmacy benefit management (PBM) services provider Catamaran (TSX:CCT, NASDAQ:CTRX) were down by more than 10% at one point today after Walgreen announced that it’s moving 120,000 employees to a private health insurance exchange where they can choose a plan from multiple insurers.

So what: This is a similar type service as the one that Catamaran and other PBM service providers, um, provide.  Another big pure-play in this space, Express Scripts, was also off on the news.

Now what: While this was just an announcement and has no financial implications for Catamaran today, the possibility that other corporations might follow Walgreen’s lead has scared investors.  The health insurance game in the U.S. is a tough one for us Canadians to get our heads around and given all the moving parts that go into it, investors would do well to have a complete understanding of all of the dynamics at work before wading in.

Assembling an air-tight portfolio can be a tall order. But every seasoned investor knows this little secret: You can build your portfolio and protect it with high-yielding dividend stocks! Now, which dividend plays are the best, you ask? We found 13 of them …

To help take the guesswork out of dividend investing, The Motley Fool assembled a Special FREE Report, “13 High-Yielding Stocks to Buy Today.” Just click here now to receive a copy at no charge!

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.

Follow us on Twitter and Facebook for the latest in Foolish investing.

Fool contributor Iain Butler doesn’t own shares in any companies mentioned.  The Motley Fool doesn’t own shares in any of the companies mentioned.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.