Caremark Stock Falls in Active OTC Trading
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Caremark’s common stock plunged sharply in active trading Wednesday as jittery investors dumped more than 2.1-million shares of the Newport Beach-based company on news that it expects to report flat earnings for the first quarter of 1987.
The single most-active issue in the over-the-counter market, Caremark fell $3.875 per share to close at $15.875. Wednesday’s volume represented nearly 10% of Caremark’s 22.9 million outstanding shares and set a new record for one-day movement of that stock.
Caremark, which previously reported 12 consecutive increases in quarterly profits, said Tuesday that it expects to report net earnings of $2.7 million for the first quarter, equal to the amount it reported a year ago.
However, the company said it expects to report that revenues increased 48% to $52 million from $35 million during the like quarter of 1986.
Widely considered a darling of the investment community, Caremark last month traded for a 1987 high of $25.375 a share.
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