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Валгрин Ко. Message Board

  • wildbill15 wildbill15 Feb 22, 1998 8:38 PM Flag

    more on p/e

    If you think Walgreens is expensive, look at CVS. It is selling for over 75x earnings. I think that walgreens at 36 and
    change is fairly valued based on current earnings and the premium that has been built in the stock price. Let's face it, the
    fundmamentals for both companies are good. Increase in rx drugs, great merchandising etc. The big question is who will win the battle
    between CVS and WAG. I would not bet against WAG. They are well managed and have no debt. Their expansion is financed by internal
    growth and earnings. This in my opinion is overlooked by alot of people. Walgreens is on a fast track to expand into new markets.
    CVS is buying Arbor and trying to grow through acquisition. I think WAG has the edge. New RX markets, a brand name like Coke and
    a great future ahead of them. They are also setting the trend on 3rd party insurance prescription reimbursements. They will
    re-negotiate rx contracts and will begin to dictate, to some extent, what they take and don't take as insurance plans. This is a long
    term growth stock, big gains will come to those who buy on dips and hold through thick and thin. CVS will be no match