Well, dudes, the PBM war has commenced, with Caremark taking a decisive battle in Texas with rival Medco. The collateral loser, surely, is Walgreens who will see CVS capture virtually all of the $.5B/Y pharmacy biz generated by Texas State employees and covered retirees.
Lot's more of these PBM battles yet to come. If you follow WAG as an investment, better do your DD and start watching "The Biggest Loser."
Waggie pumpers HATE the idea of all Americans having some kind of group benefit and discount. Why? Because if Walgreens lost its ability to GOUGE customers that lack a group discount, the beloved WAG margins deteriorate, and WAG Pharmacists might have to downgrade to a Buick or Toyota, instead of a Lexus or Corvette!
Why do WAG pumpers hate the Wal*Mart $4 generic?
Simple, really. They hate it becauses it exposes the tragic underbelly of Walgreens extreme vulnerability to discount-pricing pressure on filling prescriptions at less than fullride. Walgreens, simply and sadly, just can't compete on the same playing field with Wal*Mart or online providers.
Universal healthcare. Discounted generic drug pricing. Walgreens hates it all! What Walgreens wants is for Americans to eschew cost effective prescription fulfillment and go to Walgreens, anyway, because it is more convenient.
Walgreens has a very simple choice to make. Quit opening so many, stupid new stores that are truly unneeded, and focus your capital on bringing prices down for WAG script customers. Or, find some new and creative way to indemnify your senior mangement when your archaic business model implodes and shareholder suits challenge the viability of your asinine business model.
"Another day closer, and deeper in debt.
St. Peter don't you call me,
'Cause I can't go.
I owe my soul to...
... the insane new store opening strategy that perpetuates the S/P decline with absurd metrics that only a Mongoloid idiot, or an overpaid Walgreens pharmacist would support."
Walmart: $4 generics. Walgreens: $4 Choco-Macadamia Nuts. You choose!
No, dude, the "ouch" is for those losers that ignored the "Two Trains Running" discussion I initiated and which commenced, early last Fall, when both Walgreens and Walmart's S/P's were almost identical.
What's the divergence, now?
Hope you have lots of xylocaine and PrepH because you will surely need both with this type ofmisguided reasoning. My WMT is doing just fine!
What a hoot.
WAG gets killed by a falling dollar. THEY HAVE NO OVERSEAS HOLDINGS. Hello? Anybody there? The only thing WAG gets from a falling dollar is a hugely higher cost on all the frontend crap they try and sell versus WalMart and the dollar stores that already have the same or better stuff for less, and can afford to work on lower margins. Their competitors, on the other hand, who have already internationalized, earn profits in strengthening currencies... Yuan, euros, peso's, loonies.
Falling real estate prices? Boy, there's a boon to the balance sheet. NOT!
"True growth" and "infrastructure" really do need to be married in the same statement. Increasing a small increment (under 5% SSS) of prescription sales by employing HUGE increments of investment capital for inane new stores is nothing more than a shill's pyramid scheme.
Compared to the apparent strategy I sense at Walgreens, which you apparently support, yes I would strongly prefer the portection of TBills as a quality investment in a period of recessionary uncertainty.
Dude, AARP has no political thinking. It is not a political organization. And they do not interpret anything the candidates say. They only ask for commentary from them, and... that lacking... draw from speeches on public record where the candidates express their views.
You offer no intelligent rebuttal for the points I raised to you about store openings and market share. In fact, you have nothing to say in support of your illustrious Walgreens investment except HAHAHAHAHAHA.
You must really be either Ivan, or bananarug/# optional. Based on the peculiar coincidence of your both frequently using "Nuff said" a few too many times... you obviously are another bananarug ID and, as such, must be disgraced and sent to the "IGNORE" pile.
Ivan has never posted a message on this board with any content or intellectual value. He is just one of a small number of Walgreens employees that bought shares for a reduced price from their employer, Walgreens, and... having no concept of investing or equity ownership, mindlessly march like the Frankenstein monster into the next investment cycle with the adolescent and Utopian aspirations that somehow Walgreens S/P will grow, split and bestow huge gains to them.
This isn't Warren Buffet you are attempting to have an intelligent dialog with!
So, don't take it all very seriously. The Institutional guys obviously didn't, today! They dumped this l'il piggie like everything else. And there's lot's more to come! Believe me.
I said it before, it was good advice, and I offer it again. "Take an economist to dinner" if you want to know how to invest for the next 5 years. Forget Bernanke... he is largely a "monetarist." Learn how Economics shapes policy... and vice versa.
If you are a serious investor, heed the warning!
And, if you have money to burn... buy Walgreens! Or get a wood stove. You choose. Either will burn up your money in nothing flat!
Bananarug, thanks for posting all of the links to back up your position. When Yank posts a link it is usually about stolen grave stones! LOL!
"Yank, face it, you have not idea what universal health care is."
His idea of universal health care is just like all of the rest of his desired government benefits.... SOMETHING FOR YANK, WHICH IS PAID FOR BY SOMEBODY ELSE! That's ALL he wants!