Keep it in perspective. Walgreen has never suggested they will do an inversion. It's large bank shareholders pushing for the value it would create. At the same time Walgreens will do whatever is best for the company and it's shareholders. Certainly customer backlash over avoiding U.S. taxes would be part of their consideration. If the U.S. wants to keep it's large taxpayers, they may need to be a bit more competitive on tax rates. Walgreens could lose a lot of customers and still come out ahead by moving headquarters to Switzerland.
Estimates for the quarter are same as they were 90 days ago, despite surprisingly strong monthly numbers. Should beat estimates handily. We are 3-4 months away from publishing estimates for 2016 when revenues will be more than 70% higher than current year. WAG is anything but over-valued despite suggestions to the contrary.
U.S. activists slam possible Walgreen tax move as 'unpatriotic'..........if Walgreen were to do an inversion, said the move would add up "to more than $4 billion in lost tax revenues over five years, most of which would likely have been paid in the United States."
Sentiment: Strong Sell
I think there will be a dividend increase, but I'm not sure it will be generous. Walgreens, while determined to maintain shareholder interest, will probably allocate as much cash as possible to the Alliance Boots acquisition.
Rite-Aid lowered their estimates for next quarter. They are the over-valued drug store.
Let's face it Wasson et al has made a lot of shareholders wealthy if not rich. That's what he is getting paid for and he has delivered in spades. there are two sides to every story. If you happen to be friendly with your local store manager or maybe an assistant manager you get a totally different answer.
Many of them remember working when Dan Jorndt, Dave Bernauer and Jeff Rein were presidents. They had DM's that were encouraged to not only motivate their store level crews but to address their concerns. They were cheerleaders for all of those store level employees that lead Walgreens from good to great.
Those days are long gone. Walgreens shareholders expect that management will bring as much to the bottom line as is possible. In today's world that means that soon Walgreen employees will no longer get a discount on sale merchandise. Perhaps management doesn't understand that anything that is not on sale is much cheaper at Wal-Mart . Giving an employee a discount on sale merchandise just saves them a trip to Wal-Mart.
The old saying of "location, location, location is going to crumble. Walgreens has that in spades but doesn't seem to understand that in today's economy you have to have motivated employees that want customers to come back not because you have the lowest prices or are most convenient but because they like the store experience. I don't own any Walgreen stock but if I did, I would sell.
a stock split is an expense without a purpose. let it run. There was a time when it was difficult to buy stock in lots under 100 shares, so keeping the share price low made a company's stock more affordable. Today you can order 10 shares and get a rapid execution.
The company plans on letting this stock go above 100, the powers that are in charge do not like the idea of a split. Allliance Boots is working and will be wholly purchased in 2015. 50/50 that Wag will move headquarters over to Europe and add billions to the bottom line, thanks to US being greedy in going after tax genie, they will kill the golden goose.