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Walgreen Co. Message Board

  • big.yank big.yank Nov 19, 2010 10:44 AM Flag

    Humana Gets It!

    They are strategically rewiring for a reodered business environment. What is WAG rewiring? Where are all those alleged big SGA savings?

    Customers drive the prescription marketplace. Look at the Goldman-Sachs estimate in today's WSJ article. Revenue from Medicare Advantage plans, alone, is expected to DECLINE from $51 billion to $37 billion by 2018. The retail gravy train in the pharmay space is slowing down as it enters a steep upgrade.

    All I see is platitudes and willy-nilly store growth in the Walgreens scope. Will the lumbering locomotive make it up the mountain? Frankly, without some meaningful strategic change, I THINK not.

    http://online.wsj.com/article/SB10001424052748703374304575622480028/578008.html?ru=yahoo&mod=hs

    Tata,

    Yank

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    • What I get from this article is that Humana's market share will grow as several major Insurers leave the market.

      Humana's Executives with it's contracted Medical provider network did not listen to BM cmxsus2 and his logic on market competition.
      Cmxsus2 may have an employment contract with a major Insurer but he surely does not have a plan to increase market share/profitability of the Senior insured population.

      As for the locomotive express making it up this mountain, it seems added Horse Power needs to be placed in the Engine Room.
      You can't engineer you way around this development in the Health Insurance Industry with Confrontational tactics.

      • 1 Reply to robbsbeach
      • Adding "horsepower" is almost always a good thing!

        I think the take-home in Avery Johnson's WSJ
        article is a clearcut and wholly relevent observation that a quickly and radically altered landscape in both medical and pharmacy services is about to explode with both risks and opportunities abounding for all players. The magnitude of changes in sheer numbers is staggering if the Goldman-Sachs estimates are to be believed.

        Staying the new store/market share at any cost strategy is narrow and foolhardy, IMHO. And having pharmacists give flu shots, gambits with last-ditch Q4 share repurchases and "buying-forward" programs like "get it before you get it" and flu-shot gift cards only affirm that current management is incapable of restrategizing the business plan. Is that really all ya got?

        Is ame old, same old good enough to provide a future for Walgreens and investors in their stock? I'd love to hear Avery Johnson's reply to that question!

 
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