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Walgreen Co. Message Board

  • ivan_starmypost ivan_starmypost May 21, 2010 10:27 AM Flag

    Walgreen shares fall as Credit Suisse downgrades

     

    Thursday May 20, 2010, 1:49 pm EDT

    NEW YORK (AP) -- Shares of Walgreen Co. fell Thursday as a Credit Suisse analyst issued a downgrade, citing slow movement on the company's plan to cut costs and boost store productivity.

    The stock fell $1.52, or 4.4 percent, to $33.29 in afternoon trading. The stock has traded between $27.89 and $33.75 over the last 52 weeks.

    Overall, the broader market tumbled over concerns about the world economy as the euro lost value and U.S. jobless claims increased.

    Credit Suisse analyst Edward J. Kelly downgraded Walgreen's stock to "Neutral" from "Outperform" and cut his target price on the shares to $36 from $42.

    "While Walgreen's plan to slow growth, cut costs, and enhance store productivity has yielded some positive results, we have been generally disappointed with the repositioning to date," he said, in a note to investors.

    His biggest concern is slow progress in the company's changes to its consumer strategy, he said, citing a lack of differentiation by market, a de-emphasis on new product launches and missteps in relocating categories.

    Walgreen closed its $623 million buyout of the Duane Reade in April.

    "Walgreen recently made some adjustments, including a management change, but more aggressive moves may be necessary and we believe any meaningful improvement will take time," he said.

    Meanwhile, he said business trends remain sluggish for the next few quarters.

    He said Wall Street's profit expectations for the company remain too high. Analysts surveyed by Thomson Reuters expect profit of $2.25 per share, on average.

    This topic is deleted.
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    • walgreens could stand to make some more management changes, starting at the very top. i think we'd have some celebrations in the store ranks if that were to happen. the sentiments expressed by credit suisse are valid and just the tip of the iceberg, truth be told.

      • 1 Reply to unoprvtr
      • "affecting the entire body," rather than a single organ or body part.

        For example, systemic disorders such as high blood pressure or systemic diseases such as influenza affect the entire body.

        An infection that is in the bloodstream is called a systemic infection. An infection that affects only one body part or organ is called a localized infection.

    • second_wave_crisis second_wave_crisis May 25, 2010 10:51 PM Flag

      good info

    • and this moron didn't know this a couple weeks ago? Look at their last upgrade on wag, you would have made more in cd's. They were early then and late now. its called azz backwards

      • 1 Reply to milo_hanson
      • His biggest concern is slow progress in the company's changes to its consumer strategy, he said, citing a lack of differentiation by market, a de-emphasis on new product launches and missteps in relocating categories.

        Kelly was very clear and moderate in this statement.
        "Consumer strategy" meaning Pharmacy Healthcare consumers.
        "Product Launches and Missteps"
        Products that improve the quality of life in all stages and a direction that involves it suppliers who develop products into this market segment.

        Making cheap me too products is what Wal-mart does and ships American jobs overseas.
        P&G understands the value of a stragic partner, however walgreens managemrnt does not presently see the value of this relationship.
        And this outlook entends into the larger market sector that Pharmacy's competes in...

    • Kelly was, of course, refering to the implementation of CCR (Consumer Centric Retailing). Those of us at the store level know that it's been a big bust. It has done nothing but confuse customers at a great expense. It has also done away with certain items that should never have been done away with (i.e. WD-40) and new product launches are harder to implement and establish in the "basic" department areas.

      • 2 Replies to gvravel
      • Customer count is a concern and share loss will follow as long as the company keeps drawing lines in the sand that chases pharmacy customers to their competitors. Recent policies in the prescription sector have proven to be pennywise and very pound foolish. The company has lost sight of it's core strengths in pharmacy while competitors hone in to take advantage. While parts of rewiring are great to expand services (MTM, immunizations, home health care, etc.); they must come in the form of addition to core values not at the expense of what made this company the most profitable one in it's sector to date. Those in power need to eat some humble pie and re-establish taking care of pharmacy customers 1st and foremost then moving forward from there.

      • A little more from the Credit Suisse downgrade ... this is another indictment of the management team

        WE ARE MOVING TO the sidelines with Walgreen (ticker: WAG) until visibility (or the risk-reward) improves and [we] downgraded our rating from Outperform to Neutral.

        While Walgreen's plan to slow growth, cut costs and enhance store productivity has yielded some positive results, we have been generally disappointed with the repositioning to date. Our biggest concern is the lack of progress in Consumer Centric Retailing (CCR), as the remerchandising effort has had execution issues. The slowing ramp of cost savings, questionable capital allocation, and increased execution risk also represent issues in ...

 
WAG
68.77-2.12(-2.99%)Jul 31 4:03 PMEDT

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