I was wondering if averyone on this board would be so kind as to give me your opinion on buying some WAG stock through their direct purchase DRIP plan. Should i buy in now, or should I wait for this supposed correction that has been mentioned? As I am new to the stock market and a young investor with a limited amount of money to invest, I'd like to get some opinions from existing shareholders before I let go of my cash. I'd appreciate your help. thanks. Bri
As a long term holder of WAG (since '86), I can tell you that this is a great company and stock. Welcome aboard! It is not a high tech wonder thundering ahead 3 points in one day and falling 4 the next. It has been a sure and steady gainer over time. It is a long term hold and not necessarily a trading stock, in my opinion.
It is pretty pricey as I have stated in previous posts, with a PE of around 40. This is my only concern at all about this fine company.
Since you are getting in through their DRIP program, here is what I would suggest. Take the money you have set aside for WAG and invest it monthly over the next twelve months. In other words, use dollar cost averaging. You'll get some shares at higher prices, some lower, but you'll lessen the risk of buying it all at a high price now and getting burned.
If WAG continues to go up, you'll make money. If it corrects, you'll be buying some shares at the lower price. I don't see Walgreen correcting radically, I feel it has just gotten ahead of itself a bit.
Whatever you decide, buy Walgreen at some point!! Good luck!!
Why is everybody on this board so paridoid about a p/e of 40? There are a lot of stocks trading for much more with a lot higher P/E ratio. With the plans Walgreens has in place for future expansion and judging by what they have done recently in the past there seems little room for this stock to take a dive > 10%. Relax and enjoy it, when brown material joins up with the fan blade in the rest of the market this stock will be holding its own (umbrella may be necessary)......