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Валгрин Ко. Message Board

  • futureok6 futureok6 Apr 30, 2007 2:04 PM Flag

    WAG vs. CVS p.e. photo finish

    Wag at 44.61 has a p.e. of 23.02 and Cvs at 36.82 has a p.e of 23.01. Pick your winner today.

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    • Regarding deserved recognition, I think WAG is deserving of recognition for their enhanced performance over the last few qtrs; I'm totally impressed by this SSS. Maybe during the trough of the 6-7 year base, they were not so deserving becuase they posted less than stellar results sometimes; still good, but subpar for Walgreens and more profoundly, performance was much below the period when they sported a PE of 50.

      I avoided WAG over the last 6 years, but now I'm back with zeal because it seems they have some of the old form back.

      SSS says a lot--customers obviously like the WAG experience and I think this trend will bode well for 2-3 years.

      Old store replacement and renovation are probably a driving force behind this SSS momentum. WAG is not sitting around and milking the company.

    • Good post. WAG has known this for years. It's just that a lot of people don't realize this. It will pay off in the long run big time. If you are only in it for the short time, you better know how to play.

    • It is always great to learn new prospectives. Where I live the Walgreen stores and CVS stores I find to be very similar in age of store and location. Vaule line likes both companies and also the vaule line has moved the industry to a recent high of 10 out of 96 industries. During the Walmart scare the pharmacy services sector got as low as 60 out of 96 industries. Last May Wag got to their 52 week low but by the middle of September was at their 52 week high of 51.60. I wonder where Wag will be in the middle of this September. I understand the importance of SSS but the stock market according to Peter Lynchs book beat the street has a chapter earnings earnings earnings as a main catalyst to drive the price of a stock. I think this industry should be related to that aspect also. There is no reason that Wag & CVS should not become growth stocks in this age of the baby boomers need for drugs and the aging population. Right now the two companies become the dominant players. There is consolidation in the industry so I expect there to be less players even down to being less and less independent pharmacists. I appreciate your perspective on the accounting matters as far as opening and closing stores. As I do not work for cvs or Wag I am only an investor so that is my background and there is that old saying not to fall in love with a stock. Regards.

    • I think the stock (WAG) does not get the recognition it deserves. For the most part, the american public are clueless about investing.

      Making money year after year in a no-frills business model may not be sexy..but I'll take it

    • SSS are important. The number includes all locations open a year or more. So you will have some stores that are your WAG A & WAG B example no question about it. The key is to have more "A"s obviously and that comes down to Real Estate.

      That is where WAG is the hands down winner.

      WAG will pay for good locations for new stores and reinvest heavily in the older ones as that is how we grow. The majority of our stores are 5 years or younger.

      WAG stores make the most profit per sq foot in the industry..not just drug but all of retail.

      Aqcuisitions are tricky as you never know what you are going to get. CVS has a history of closing aqcuired stores and moving the scripts in to an exisiting CVS and declaring look at our comps! Legal to do..but misleading.

    • This is a no-brainer...WAG all the way...Why one word...Debt

    • Good you drew my attention to Snoot's post. I had a good laugh on this statement:

      >>> Throw in the Caremark purchase and now you have a company that will never be able to be analyzed<<<

      Who hasn't been sucked into this management obfuscation at one time or another.

    • Guilty as charged, sir. So sorry.

    • This is an example of a great post by Snoot32. I especially like the part about:

      Remember some recent drug store industry shakers...
      1. Drugstore.com would change the industry forever.

      2. Mail Order will reduce growth of Brick & Mortar stores

      3. Wal-Mart intros $4 generics and other Big Box chains follow.

      I think this is another candle in the wind

      What a contrast between this type of thoughtful and intelligent post and the low class drivel that hinvestmntbunger or Yank or whoever, litter this board with! We need much more of these and less(nothing) from the other rabble! Wag at $44.75 by the end of the day!

    • There are so many parts to the equation here that I will just say this that wag can wait a few quarters here. CVS may reach synergies that they projected or there may be some more difficult roads ahead to the integration here. If the combined entity proves very successful then Wag will have to reevalutate their position if they lose market share. As individual entities over the last 5 years both cvs and caremark did well for their respective stockholders. So let us see what happens here ........ The companies are different in their balance sheets but there is the possibility in the long run that they could both become a lot more alike down the road. I expect success from both companies. I will leave it like that and so does vaule line.

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