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CVS Caremark Corporation Quits Tobacco Cold Turkey

By Dave Williamson and Max Macaluso – Feb 8, 2014 at 7:00AM

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CVS is discontinuing cigarette sales in all its stores later this year. A laudable move, or one that will lose the company billions?

In the headlines segment of Market Checkup, The Motley Fool's health-care investing show analysts David Williamson and Max Macaluso look at the big news from CVS Caremark Corporation.

CVS announced that it will no longer sell cigarretes, or tobacco products of any kind, in its retail stores. Of course, like many smokers quitting cold turkey, it set its date far out in the future, specifically Oct. 1.

In this video, David and Max discuss the impact to CVS's financials and how it could benefit its competitors, and they take the view that CVS is smartly shaving short-term profits for long-term gains.

David Williamson and Max Macaluso, Ph.D., and The Motley Fool have no position in any of the stocks mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Stocks Mentioned

CVS Health Stock Quote
CVS Health
$100.88 (0.47%) $0.47
Altria Group Stock Quote
Altria Group
$45.82 (1.48%) $0.67
Walgreens Boots Alliance Stock Quote
Walgreens Boots Alliance
$41.08 (0.66%) $0.27
Rite Aid Stock Quote
Rite Aid
$5.16 (-1.34%) $0.07

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