A friend of mine recommended WAG as a good investment.
His logic is very simple. WAG has low PE, good balance sheet, high potential for growth and a good dividend.
I did some DD and I see WAG has a good balance sheet even after the deal with Boots.
Yes, WAG ended ESRX relationship but if things go south, WAG probably can go back to ESRX with a deal like CVS. So RAD and CVS are just lucky for time being but that can end at any time. After all, CVS has $26B of goodwill which smoked all my hopes for CVS.
WAG FY 2012 will end in next two months so I only consider FY 2013 and FY 2014.
FY 2013 income is $2.93 or PE of 10.1 at current price. FY 2014 income is $3.23 or PE of 9.16.
Now, Boots investment will also add about $.25/shr in 2013 that I don't consider right now.
Another positive point is when WAG starts to sell some of Boots beauty products. These products have very high margin (60% of Boots profit comes from beauty products).
Some WAG stores will sell Boots beauty products which: a)attract more customers for WAG b)WAG makes good profit out of them. Women spend billions for beauty products and some stuff are sold over $200 a piece (kill me but make me beautiful).
You may say Europe is slowing down but medecine is not something to ignore and beauty products expenses as imortant as phone/cable/internet...expenses.