Big down day likely due to the huge recall of generic Tylenol. There was a lot of hype this morning all over TV, implicating Walgreens.
However, Walgreens is NOT affected by this recall. The company that makes these housebrand OTCs, Perigo, does supply other products to Walgreens. But Perigo does NOT supply Walgreens with the generic Tylenol in question.
Another in a long line of market over-reactions to events that have no effect on Walgreens.
Some companies PR departments really know how to crank out the info. WAG is sorely lacking. When the stock price is dropping, its time to defend oneself with all kinds of news releases, no matter how insignificant the info is - as long as it has a positive spin.
Im not really sure what they can say.Wall mart has been able for so long to hammer the competetion.Its going to take ahile for the street to figure it out.Wallmart reported week sss and was vertually unafected .Target reported 4.2 versus the 4.6% the street was looking for and got spanked.I dont think walgreen coming out with a press statement will help much.When wallgreen reported killer sss it did nothing its all about what the steet "fears" will happen.Like it or not it may take awhile for this tree to bear fruit.