Walgreens enjoy your new home, we in the USA will enjoy shopping in an American store
Sentiment: Strong Sell
Since 2005, WAG has declared the next dividend on the 9th - 14th of the month Jan / Apr / Jul / Oct) in almost all cases - the latest declaration was June 19th (in 2012). Its now the 22nd and still no declaration, what's up?
After all the cuts to meet earnings with cuts, the last and only lever left to pull in meeting projection is Inversion.
After this lever is pulled there is nothing left to use to meet earnings projections.
That is why the 2012 projection has been pulled down.
The real question is why anyone would pay such a premium vs. CVS. WAG trades at over a 25/pe, CVS at about 19X despite the fact that half of CVS is Caremark which the closest comp ESRX trades over 30x . The tax/inversion strategy is dubious, if Wag doesn't go for it it's a $60 stock at best. Keep crossing your fingers on the tax inversion, otherwise you have to rely on somewhat shaky fundamentals.
RAD, now that's funny. Students should study RAD's expansion plan as a text book example of how not to expand a chain. Let's take every company that is losing money and then borrow money at high interest rates to buy them out.
U.S. drugmaker AbbVie finally wins Dublin's Shire with $55 billion deal
This is bigger tax inversion than WAG and it bases in Chicago...Where is #$%$ Durbin
Kinda wonder what's up with the announcement - the increase has generally been announced the 2nd Wednesday of July over the last several years.
beach, you make some interesting points, but you get a little carried away also. Do you really believe the US belonging to NATO is an act of benevolence? Do you really believe education in the U.S. is superior to that available in Europe? Maybe in certain University disciplines but certainly not in K-12. You're worried about tax deductions? Lower the tax rate and phase out deductions. Neat and efficient package if you ask me. I pay my taxes too, but I resent the way they are spent. One truth regarding U.S. politics. No matter how high the taxes, the debt will grow. There is a deep seated spending mania pervading Washington DC.
beach, I didn't mean gotcha as in I've got you, I meant I understand your point. When you try, you demonstrate useful insight and knowledge. It is when you come around with your nose in the air and quote unintelligibly that I have a problem with you. Thanks for your contribution to this thread
Who has done the Tax saving calculations for Walgreens are the Wall-street
financiers. so your gotcha needs to be address to this group who will be funding the second step of the Alliance boots merger.
4 billion is the number they put on USA tax saving with a inversion.
And these folks are now increasingly Concerned about the revenue guidance put out by Walgreens and Alliance Boots in 2012 when they made a funding commitment.
Now CAGR(compounded AGR) has been tracking below projections and have been redacted for guidance as announced by Walgreens CEO and CFO.
In order to meet CAGR.. changes need to be made in Walgreens operations, cost structure and cash on hand.
That CAGR was discussed in the Paris meeting with Walgreens and AB.. a meeting that have never been reported to the rest of Walgreens shareholders.
Will this inversion benefit Walgreens in the long run, some folks don't think so as Wmt, Cvs, Rad and other retailers will use this against them in marketing to the USA medical insured customer..
It also might bite them with the PBM's that have mail order options..
So risk has increased for the stock holders..
So sending 17 billion of USA taxpayer funds to a Country that depends on the USA under Nato is fine ..
And stripping USA assets though debt is OK too.
And lets not talk about the USA spending under the ACA Healthcare that is putting the USA on par with this tax haven and every other industrialize nation to provide service for its citizens, that is not important.
So Switzerland manufactures Cheese from the USA's Wall-streets cows and then wants our support when Russia intrudes its air space.
Oh, how about USA education and research spending , we don't need that also.
What we need is lower taxes on Corporations, those poor folks who fly in private jets, stay in luxuary hotels eat lobster or steak and attend business meetings to pound there chests while playing a round of Golf..
all tax deductible under GAAP.
I pay my USA taxes and don't try to become an expat and taking USA workers money.
so how much extra do you add to your tax bill every April? Or do you maximise ALL your deductions to reduce your tax bill