Can anyone tell us the "Accounting change" WAG is taking 43 Mln. Charge or .05 cents per share pre tax:
-How it will effect WAG stock price? -How it will WAG earning for 4th Q 1997? -Does this means that WAG stock will be lackluster for next two Q's or whole 1998? - Any ideas what is WAG's Near Term and long term target price? -What is the earning target by analyst and if WAG is not going to make the earning estimates because of this charge the price will go down? I am confussed help me please?????
REJI, do not hyperventilate!! It is strictly an accounting adjustment. The standards for recognizing software expeditures have changed. Before a company could capitalize them over the life of the software now the company has to expense them immediately. The earning power of WALGREENS has not changed. It is still a cash generating cow!! The analyst will lower their estimates by the nickel and move on. The market is crazy but for an accounting change the price should not drop. Sleep well..Walgreens will still make all of us Millionaires!!