I am not going to lower myself into a trading
position on WAG. I'm an investor, not a trader. This is a
long term investment. I'm in @ 23 and change/haven't
even held 18 months for capital gains
There will be ups and downs, downs are the opportunity
to increase holdings. Buy on >20% retractions
($41.00 or less).
What are the agenda's of the
naysayers on this stock? SHORTS!
Yankee: JFYI, 80%+ of all prescriptions sold are
to patients covered by some insurance plan, only 20%
are cash customers.
You;ll go out of business
selling to only cash customers, but you must draw the
line with theses HMO's somewhere. To continue to
accept less money from these people is
arnolddog(rph in Seatle)
WAG is not going to lose much money from dropping
a prescription plan...I'm pretty sure WAG checked
to see what percentage of sales was coming from the
WAG makes its money from those
consumers without prescription plans anyway. Paying
customers, repeat sales from cash customers is most
important. You know, self-employed, etc...
tidbit of info you guys may not have heard about...the
sixth largest HMO in New Jersey is bankrupt, and the
president of the company committed suicide...A government
branch in New Jersey is taking the HMO over.
can interpret this anyway you want...
It was only a point I wanted to bring out. Some
of the stores may see a minute drop in sales of
drugs due to dropping some of the HMO's. Customers
still using an HMO will only go to another store to buy
I do not question their managemnt
decision but just a thought of a possible lose of sales
and a lessor quanitative purchase of the drugs to be
sold that may increase the purchase price from the
mfr's. They too may lose sales of other products because
of not using that WAG.
BTW, me too very long
Wag came out with an article several months back,
that they would drop hmo's they could not make money
on drugs. The hmo idea sell drugs below cost people
would come and buy other product and WAG make money ,it
didn't work. It's not the first hmo wag has droped. REAL
LONG ON WAG
>I am surprised to see
that Wag is dropping some of the HMO's for
> because of the low reimbursements. There is a 3
way street >for this
> (WAG,HMO,Mfr) and
they are all making $ and so are >shareholders.
This may be
> lost sales/earnings.
position is that the reimbursement rate from those plans
is so small that it doesn't cover the cost of
filling the prescriptions, so we lose money on each one
we fill. The HMO wants the rate as low as possible
because that is where they make their money. There has to
be a happy medium. WAG obviously isn't asking for a
fee that is TOO high because they haven't driven any
insurance companies out of business, but some HMO's want a
fee so small that we can't profitably deal with them.
Mr K55-- Been there too but we lost some on the
down side and gotta pick up again to sustain the over
$50. Don't know why we lost speed the past few days
but WAG will get moving again because their future is
nothing but growth.
You know well not to watch the
daily price-- just look at it every once in a while..
Look what it has done for you in , What 3--4 splits!
Think what it may do in a few more years for
I am surprised to see that Wag is dropping some of
the HMO's for prescriptions because of the low
reimbursements. There is a 3 way street for this (WAG,HMO,Mfr)
and they are all making $ and so are shareholders.
This may be lost sales/earnings.
Lets hang in
there -- long on WAG.
I bought wag in dec'95 at$14 a share. More than a
triple in less then 3 years! Walgreen stores in fort
lauderdale are clean and well run. Only competition here is
eckerds. Wag has lower prices AND sells booze! Stock up on
Wag if it drops much more.