Pe is whopping 31 compared to Walmart 18pe and former Kmart (now symbol SHLD) at 12pe. CVS is 23pe and grocery stores such as Safeway are 15 pe. You're paying a baseball player to hit 40 home runs and he's only good for 20.
Walgreens needs to come down to reality because at these prices it is very unattractive and a POOR VALUE FOR THE MONEY.
Another "EXPERT" with his predition....
Re: Ridiculously Overvalued!
by: Z3185 (30/M)
Long-Term Sentiment: Sell 06/02/05 09:03 am
Msg: 36233 of 36372
Better odds today with missed targets, although CVS raising estimates may help keep current prices for a day or two then small sell of to low 40's
I think their multiple is so high that the income growth you're talking about is already factored in and then some. I'd be cautious and take some money off the table if youve made any. We'll know soon enough.
Walgreen's is about as strong a company that exists today. Growth continues to be very strong, they are the industry leader and are eliminating competitors. Their income marches up and up. The only reason to short this stock is if you like to lose money.
my low end for 05/06 ps 38.28 based on a 22x 1.74$ The last two years this has been the low end multiple. Although the multiple range on the high end has gone up over the last two years, with the economy where it is along with gas and more competition increasing and them having much lower multiple ranges I see no reason for this to change much, Of course my extreme low is 18x which is 31.32$ I hope we see the 30's again as it would be a great opportunity to load up.
Hi Chevy, so I guess Why Buy's recruited another member. Although he's accused me of having two aliases on here, so maybe you're just his alter ego. Very insightful post by the way.
<< Did you check the price today? >>
Yes, down 22 cents.
<< Do you know how to read a stock chart? >>
Yes, I do. And sometimes they go up and sometimes they go down but at least I have the sense to know that when they go down it doesn't necessarily mean the sky's falling.
<< Walgreens is going down. I suggest you rethink your position or become a bagholder at $42, and then high $30s. >>
I'm in at a lot lower than $42, so I wouldn't worry about whether I become a bagholder or not. Kind of you to be so concerned about my well-being though.
And now you're on record as saying that WAG is going to the high $30's. Care to enlighten us about when that might happen? I'd be willing to bet it hits $50 before it goes below $40, unless it splits first of course.
Did you check the price today? Do you know how to read a stock chart? Walgreens is going down. I suggest you rethink your position or become a bagholder at $42, and then high $30s. You're the only member of the Moron Club, congratulations on your rise to CEO.
This is the same basher that has been posting for the last several years. He has been embarrassed so many times, he has to keep changing his ID. He remains a nonentity, a hole in the air.