Sorry I don't post as much as prior times. Just plain sick of the BS from ivan (A/K/A marathon.man262, irunthe262, mommayank, ad nauseum).
On the question of PBM reimbursement pressure, I do expect the MHS deal will close (with concessions, as I have said for months) and WAG will drop out of this network next. I believe that the next contract to conclude is not with Caremark but with United Healthcare. I expect this may be even more bloody than the ESRX negotiation because of Walgreens hostile posturing re:PBM's, as percieved by UNH.
By recollection, it is not until 2013 that the WellPoint and Caremark contracts come due for renegotiation. The dates for the CMX contract were never publically announced, but my sense is that it was thru Summer, 2013.
I still think it is possible that WAG will mend its fences with Paz and rejoin the ESRX network on their terms. However, parallel Indy networks make make this a much less fruitful outcome for Walgreens, if these outcomes are confirmed.
I do see further M&A likely in this channel in 2012. I won't post my predictions publically at this time, or until I take a position, as I'm sure you would understand.
Congrats to robbsbeach on the RAD trade and gain. I am very pleased with my RAD trade and, even if it subsequently goes higher, I never complain about selling at a profit.
CVS is looking at the bi picture here, they have gained some good market share and are capturing profit on the whole claim (PBM and retail).
WAG, regardless of stock price action, is in some trouble.
I think layoffs are coming in March to help SGA.
I stopped into the state street store and the customers are wanders from the near by school. They come in for the quick food but probably because its new. there are 2 walgreens right in the vicinity. Store looks nice but I think it has reached its peak. I stopped by several times over the weekend to check out customer flow and it wasnt as busy as I expected.