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Walgreen Co. Message Board

  • robbsbeach robbsbeach Apr 18, 2012 2:20 PM Flag

    Yanks, Rabbit Dream!!


    You keep posting about a
    rabbit to be pulled out of this financial chronicle, the road to the
    PBM's impasse has been laid down and is evident in the last Q numbers.
    A short primer shows these stats, 65% of Wag's revenue comes from Rx's services, back out say 10% for non-insured Rx Script purchases, leaving 55% of revenue from PBM contracting.
    This 55% of Rx revenue also generates sales in the OTC medications of about 10+%,
    Yielding 65% from some form of medications sales.

    35% 0f reported revenue comes from the rest of Walgreens offerings including, Sushi, hair dye and lets not forget the Remi Martin.

    You know the numbers from the Super PBM, so how do you expect the rabbit to Appear without a costly premature rabbit intervention.

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    • Funny, one would think that had he posted that he sold, it would appear AFTER the post exclaiming that he bought. Nope. Not there.

      Care to provide a LINK??!!

      Or, did you wish to out one of Yank's many, many aliases?

      Not here for months, and nothing ever seems to change.



    • I lost 22k on a short once I can only say it doesnt feel good

      COVER or next month you see 37s

      • 1 Reply to jjohns8181
      • I'm not worried about my piggy bank, I don't let outside risks or internal risks of the companies I invest in
        cloud the outlook in the market.
        Lost some Won some!!!

        It is known that companies off load these shared risks into investment portfolio's piggy banks as recent Congressional hearing have shown.

        I'm glad you are on the upside as well as my friend, However Mr. Market has a community Drum that can turn on one Fat Finger, are there any news updates.

        Thanks, for the advice,

    • robbsbeach,

      I have followed this stock for 15 years and owned a lot of it for much of that time. As you know, it has underperformed for much of my recent history on this board.

      I am going to reiterate one more time my rationale for "the rabbit." Walgreens can not survive as a growth player in this space without mending its fences with ESRX before they lose the MHS Rx biz. Medco actually represents a bigger chunk of WAG's Rx volume than Express Scripts. There are only 2 ways this can happen. WAG can buy Rite Aid and force ESRX to play ball. Or. WAG can pay out the wazoo to settle with ESRX before Medco biz goes away, also.

      Either way, the GROSS miscalculation by existing management should MHS Rx volume also go away would end life-as-it-has-been-known for virtually the entire C-Suite in Deerfield. I don't think these guys want the gravy train to derail.

      There will be an announcement.

      Don't be short this stock. That's my best advice.



      • 1 Reply to big.yank
      • yank :

        It takes two sides to hammer out an agreement, and as CDS and Independents pharmacies are fighting a legal battle
        in the epi-center of medical services, this issue has not been resolved.

        Secondly, clouds have been reported with new changes occurring in the outlook for the A.C.A participants.

        I agree with your strategic outlook, the question that remains open is timing..

        Sorry, if I seem to take a different view over timming issues..