 It's a massive store network that puts 70% of the US population within 3 miles of one of its locations. It's CBS, the nation's second largest drug store chain, and it was beaten to the medication's home delivery punch by Amazon. The online retail giant, in fact, delivered a knockout. Take a look at its stock on the leak of its approval for business as a pharmaceutical distributor in more than a dozen states. 972.43 on its October 26 closing. On the news, bam, up to 1195 on the 27th. Now it's resting at 1,128.61. Highest we've seen. Joining me to discuss CBS's next move is Melissa Armo, the founder of The Stock Swoosh. Last we left CBS, hey, good to have you. The last we left CBS, it was absolutely terrified. It went from a high in October of 76, October high, that is, 76.46 on the 20th, on the 27th. After the announcement, it took a dive to 68.99 today, 98.70. A recovery or a holding pattern, we spoke when the news broke and you were bearish on CBS short term, buy, sell, or hold. What do you think investors and CBS shareholders should do right now? Well, right now, the chart is actually in a downtrend. Why? Because it broke major support. So anytime a chart breaks major support, it switches trends. So for CBS right now, if you're still long it, then you're considering it for as a long-term hold. Right now, in the short term, I'm talking in the next few months, CBS could continue to trade lower. Next target is 65, 60 bucks. It certainly can trade down quite a while until it flips. Now the one thing I will say that is a rumor, it hasn't happened yet, but there's a rumor out that CBS may buy Etna and that would be really big for the stock and it could explode if that happens. However, no one knows if it's going to happen and they had their earnings report, CBS had their earnings report Monday morning, November 6th, the stock dropped on the report and they didn't mention anything about purchasing Etna. So we don't really know if that's going to happen and if it does, will it happen in 2017 or not until 2018? Okay, well let's talk about Jeffrey's cut the stock price target for CBS health shares from 86, 76. It was due according to it to uncertainty over Amazon's potential competitive threat here. Do you think that was a wise move? Is it too early to really know the impact Amazon's going to have on this? Well I think it's going to have an impact on it and that's one of the reasons why the best thing that CBS could do is have a vertical move, a vertical integration into trying to capture some of that pharmaceutical business that clearly Amazon is going to go after. Now Amazon hasn't started selling pharmaceuticals yet. So again we don't know when that's going to start happening. But they just came out this week, they announced on Monday that CBS is going to start to do same day delivering in certain areas and next day delivery. That's going to help, however that's not going to be enough. What they really need to do is more acquisitions. They acquired Caremark, that was a good acquisition for them. If they end up buying Aetna that's going to be a great acquisition for them probably in the long term because they're not going to be able to really compete head to head with someone like Amazon, a company like Amazon. So what they can do is make it more like engaging for people. In other words, say they end up buying Aetna and you end up having insurance then with CBS. Well you'll get reductions in co-pays, you'll be incentivized to think of CBS and you'll think, oh CBS, I'll go to get my drugs at CBS, I'll order my prescriptions at CBS. CBS is a very loyal customer base, they're not going anywhere. Let's just say for example they don't even buy Aetna, CBS isn't going to go out of business anytime soon, like you just said 70% of Americans live within three miles of a CBS. Unfortunately though, it's going to impact the pharmaceutical business. It's not just CBS, other companies too, Amazon's going to step in and whenever that happens, it's definitely going to affect companies in the healthcare industry. Do you think that CBS can ramp up in time though? We don't know what the timeline is on Amazon actually rolling this out but it's doing operations in Manhattan for deliveries, it's going to roll out, what is it, one or two days shipping here nationwide trying to get in there. Is it going to speed up enough for people to say have the automatic click that says I want to do this because Amazon is so streamlined across all these sort of sectors. Can CBS catch up for shareholders to respond and really have confidence this is even going to work? It seems like a bit of a gamble. Well that's what I'm saying right now, CBS is in a downtrend, that's what I'm saying right now. CBS is not a buy, it's not a buy at all, I mean that's why some of these different companies have cut what they've said were the targets. I even think 76 is kind of unrealistic right now because the stock like I said is downtrending so they could drop before they flip around and what's going to make the company flip around. I don't think doing the same day or the next day delivery is going to make this flip around, that's what I'm saying. They need to take a foothold and do something else, more acquisitions. They need to engage customers better and that's something that Amazon does good very well but if CBS ends up buying Etna, Etna's one of the third largest health insurance companies so that would just be huge for them to think of it as the one stop place when you think of doing your insurance or your drugs or any of that kind of stuff. I think for now the stock is down but like I said if they end up merging and buying Etna and that comes out in December which it is rumored that that could happen yet this year the stock could explode. It could go over 76, it could go over 80. The major support of the stock was at 80 and when it broke that it started trending down and the way that stocks act when they start trending down people get very very anxious and they sell so if you're still in it long you really truly believe it's something big is going to happen and they're going to flip it around but as of right now that's not the thing. I will tell you one quick thing like I said the last time I was here the market made another new high again today. Any stock that is not making new highs with the market is not a good buy it's not even a good hold. The nice thing about investing and trading is guess what if you're in something and you're up you could sell it and you can always buy it back again. Well that's true so you know this is the CVS topic is unfolding continually. We got to bring you back in October to see if if your guesses turn out right on this. Thank you so much Melissa Armo founder of Stock Swoosh LLC. Thank you. Thanks thanks for having me.