Good post. But it is not rooted in true reality. For example ML has enough of its own scandal problems as of late and has shown itself to be involved in shady dealings as well, so whats your point? Just because earnings are great is not the ONLY reason to buy a stock. What one must ask is, what is the company doing with the earnings? In wags case they are doing the bloated expansion bit. Biting off more than they can chew. Evidence that the bloated expansion is waning is apparent, when we look at the insider selling, and the most recent evidence points to the SMALL dividend. Stocks that pay tiny dividends are not stocks acting in the tradition of blue chips. You all say wag has a heavy market cap, which is very true. The small dividend payment will prove later to be the first cracks in the armor of wag. This expansion is occuring at the expense of the shareholder and will most likely keep wags share price depressed. You all say that share price does not matter? How so. If price goes up quite a bit, you make money. If price down, you lose. If it stays in a winding up and down pattern, you stay where you are. Its just common sense, of which I possess alot of. Case Closed!
You are SUCH an INCREDIBLE IDIOT.You keep yammering on about Walgreens expansion as being as you put it, "bloated"...and now "waning"...are you really that stupid?...Walgreens had 3000 locations in the year 2000.By the end of 2002 they will have 4000.....and their earnings AND profits just keep right on setting records.AND they are building the stores without incurring any debt.....waning?....try a little research before opening your pie hole.....waning?...yeah...if you consider that they will be opening about 90 stores before the end of September as waning.....Walgreens has never been a big dividend stock....and it also isnt a playtoy for silly little bastards like you who juggle your pocket change around..if you actually DO make any trades at all....this expansion has been underway for years....aimed at 6000 locations by 2010....and it is actually about TWO YEARS AHEAD OF SCHEDULE.....the convenience of having 6000 prime locations with more 24 hour pharmacies and more drive thru pharmacies than anyone will become increasingly evident....and given the recent changes by companies like Merrill Lynch to take a more descriptive and more accurate look at a company using their new system versus the increasingly obsolete EBITDA (which you still cannot define) shows even more clearly that Walgreens makes most of YOUR alleged pet stocks look pretty pale by comparison.Your mouth is big, but your game is weak....you make SO much noise, but provide ZERO substance."CAREFULLY PLACED CASE CLOSED ALOT"
>>What one must ask is, what is the company doing with the earnings? In wags case they are doing the bloated expansion bit. Biting off more than they can chew.<<
We've been through this before. The expansion is going exceedingly well.
>>Evidence that the bloated expansion is waning is apparent, when we look at the insider selling<<
Have you compared the insider selling at CVS lately with the insider selling at WAG?
>>and the most recent evidence points to the SMALL dividend. Stocks that pay tiny dividends are not stocks acting in the tradition of blue chips.<<
I have stated before the reasons the small dividend is a good thing. Basically, by retaining earnings, WAG is reinvesting those earnings for me at an annual return of about 18%. Other companies do the same. Here are some companies with market caps > $10 billion that pay <1% dividends:
AFL, AXP, BRKa, BSX, SCH, COST, DELL, FDX, GS, HDI, HD, KSS, KR, LOW, MCD, MSFT, PRU, SNE, TGT, TXN and
(drum roll, please)
Do you recognize any "blue chips" in that list?
and also, what about Wag's accounting problems. Even the article realized that those accounting scandals cannot be predicted. Apparently they are prevalent among big companies. Walmart seems to be doing even better than expected without any accounting problems. Walmart has always been a good stock to buy, CVS looks good too.