Are you really asking the question? RAD has debt exceeding it's market cap. Based on profitability of the trailing 12 months RAD would require more than 26 years to pay off their debt if they spent every nickel of profit on debt reduction. That's assuming they paid no interest, which is obviously not the case. RAD has been a company plagued with controversy and poor management for many years. They have finally showed a small profit over the last few quarters due to windfall profits of brand drug patent expirations. That's a situation which can't be repeated, as there is no potential for that amount of brand expirations in one year again. WAG meanwhile has been profitable for more than 100 years. They project doubling revenues over the next 3 years with international expansion and vertical integration of retail and wholesale pharmacy. WAG pays a generous dividend which is increased every year. RAD pays no dividend and will not for a long time, if ever. Walgreen expands methodically and has a long history of successful corporate management. RAD does not expand, will probably need to contract. Their history of corporate management is largely corrupt. RAD has no expansion plans, they are just trying to eke out a small profit by controlling expenses.
Rather than slash and burn its employees by eliminating their medical benefits, why doesn't management take a more proactive approach to controlling its medical costs? Start telling doctors which tests to use to lower WAG's medical costs. As an example, Microvolt T-Wave Alternans (MTWA) can non-invasively determine who is susceptible to Sudden Cardiac Arrest (Mr. Gandolfini, of 'The Sopranos' fame, died from it recently). It was FDA approved more than a decade ago but doctors and hospitals won't use it because they have a conflict of interest: they make much more money using invasive electrophysiology (EP). EP costs nearly $9,000 while MTWA costs a few hundred dollars. NASA uses MTWA on astronauts. Do you think NASA is going to use a two-bit test on people its sends into space? For more information about MTWA G*O*O*G*L*E those letters.
Getting medical benefits on their own, employees will have to pay far more than a group rate under Walgreen's umbrella policy (it's called economies of scale). Why do you think employees hate this new trend? You're not economically bright, are you? As an example, Microvolt T-Wave Alternans (MTWA) is a non-invasive test to determine who is susceptible to Sudden Cardiac Arrest (a recent victim was Mr. Gandolfini of 'The Sopranos' fame). It's been FDA approved for more than a decade, yet doctors and hospitals won't use it because they have a conflict of interest: they make much more money using invasive electrophysiology (EP). EP costs $9,000 while MTWA costs but a few hundred dollars. WAG has more clout with the medical profession than the individual to reduce medical costs. For more information about MTWA, Google those letters.
Another excellent argument: MTWA!!!!!!!! "divide and conquer"
I think Mr. Gandolfini was pretty well off financially. Wonder why he opted to not have this test done?
He must have been waiting on "divide and conquer".
Can you give us an example of how money your "far more" entails.
I'd like to see what numbers you are using.
Maybe we can use your figures to "divide and conquer".
What is the going rate for being a investment board Pumper??
Are you employed by a P/R firm or investment banking P/R unit.. I and others would like to get in on this scam..
Hey pal, what's Wag's P/E ratio? It's 24.29, what's RAD's P/E ratio just after the latest earnings report? 13.74 - see a big difference? There's a lot of value in RAD at these prices, and I own a small business and let me tell you, increasing profit margins through efficiency and business strategy pays itself ten-fold. Because now you are lean and mean and have profits - now you can reinvest those profits to fuel growth again. Every business that squeezes every last penny to increase profit margins through their existing infrastructure before they even think about expansion is the kind of business I want to be in. Seen it first hand with my company. Who would you rather trust a large inefficient company throwing money at expansion, or smaller company squeezing every last drop of efficiency before even considering expansion? And as to their debt. They're doing what America should be doing, borrowing at these insanely low interest rates in order to rebuild their infrastructure for future growth. The people at RAD are smart - just because everyone has a Spending phobia these days doesn't mean it isn't the absolutely smartest thing you could do, borrowing at high interest rates - which is coming, is the stupid thing. Borrow now while interest rates are favorable, and reap the rewards when growth comes back - while everyone will be playing catch-up and by then interest rates will have sky-rocketed.
"Walgreens officials say the new program will provide more choices and lower the out-of-pocket costs for most employees. Walgreens said the Aon marketplace will offer a variety of benefit options and carriers for medical, dental, vision, pharmacy, and other benefits coverage."
Divide and Conquer!
I get paid the same as people (and I use that term loosely) like you who bash the stock all the way from 24 to the mid-fifties.
The only difference is I get results.
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A corollary to "divide and conquer" is "strength in numbers." If Walgreen's workers struck in protest, management would listen to their issue. That's how unions improved worker's conditions over the decades. Group rates are usually lower than the rates individuals can obtain on their own FOR THE SAME LEVEL OF SERVICE. While Mr. Gandolfini may have been financially well off, that doesn't mean he knew about MTWA. Even the consulting cardiologist to the summer Olympics in London didn't know about it (or so he told me). And Mr. Gandolfini's doctor had no financial incentive to tell him about MTWA. Did he even try EP on him? So how would Mr. Gandolfini know about MTWA? The Affordable Care Act is currently 10,789 pages, according to Bloomberg. Won't that be something to implement in another week! Oh, and your initial comment about consumers having more choices? You might want to read the front-page article in today's (9/23/13) New York Times by Robert Pear ("Lower Premiums to Come at Cost of Fewer Choices"). Insurers are leaving out many providers. With fewer providers, those remaining will be in a stronger position to negotiate higher prices, raising medical costs for individuals. Higher medical cost means lower discretionary income for consumers, leading to less purchases elsewhere. Thus the stagnant economy.
Read the front-page article in today's (9/23/13) New York Times: Lower premiums means FEWER choices, just the opposite of what Walgreen's officials are saying.
Like he controls the stock price. What an ego maniac! And he certainly distributes the companies words, biased though they may be.
I guess the rest of the world didn't get that memo.
BTW, it's "you're", not "your", Stupid.
So, you're saying that the new program will offer fewer than the 2 choices currently offered?