Is this good or bad for Walgreens going forward?? Walgreens announced the end of a Rx contract with Express scripts late June 2011, Esrx Rx revenue was estimated at 5.3 billion dollars, Non Rx retail sales make up approximately 28% of revenue, the rest coming from other operating business such as clinics, Specialty services etc.
Six month has passed since Walgreens announcement, ending its relationship with Esrx seeking direct contracts with Insurers, this direction has only yielded a 11.4% loyalty retention of Payors to Walgreens network of Drug stores. Walgreens competitor CVS, Walmart, Rite Aid and Independent drugs stores have not turned down Express scripts Rx pricing and are positioned to take this revenue into their 2012 earning. Walgreens Rx retention is not new business, but represents a loss of 88.6% of existing customers receiving prescriptions in the Esrx contract from Walgreen's. Walgreens CEO announced a lock and loaded party to increase its Direct payor contracts and has yet to produce the minimum 25% retention projected. With 6 months of experience in direct payor contracting yielding a 11.4% retention rate in 2011, will 2012 be much better.
Walgreens stated that Fair Reimbursement was the issue for the impasse, While the payor states that walgreens prices represents a 20 % premium over other Retail suppliers. With its current ability (11.4%) to go after the PBM's book of business Walgreens may very well find itself unable to refuse pricing offered by the next PBM payor. It appears the rewiring for growth plan is now put in the position to rewiring for contraction of its core business.
SG&A costs have increased in the 1st Quarter yet new growth business has not been produced. Wallstreet private investment funds are the major holder of this companies stock, while they are in a position to keep this price above Analysts current pricing targets, they are in no position to generate revenue going into 2012.
Volatility is not the friend of the a long term investor but the game sought by Wallstreet hedge funds, this direction puts this 100 year old company into the Whims of High speed electronic trading and a uncertain outlook.
Would you Buy, Sell or hold at this price and Why??
"Would you Buy, Sell or hold at this price and Why??"
If you don't OWN you can't HOLD or SELL! LOL!
It is quite apparent that this poster robbsbeach/yank is a functional illiterate and that his posts appear to be in Pidgin English or "Moron-speak" and are largely undecipherable to those who speak real English or have a functioning brain. Squeaky yank or robbsbeach or whatever ID out of 100 you happen to be using please try and learn to speak REAL English instead of posting nonsensical messages that are in "Moron-speak" or JUST STOP POSTING! You are about the biggest pile of horse poop that I have ever seen posting on a message board and the quality of your posts is so low that they show everyone just how clever and witty you are, which is to say NOT VERY! Everyone else is laughing at you again and I also hope you get all agitated when we make fun of you so you can soil even more of your Depends than normal, which means you will stink even worse than usual, if that is even possible! LOL! LOL! LOL! LOL! LOL! LOL! LOL!
Now the REAL issue! Perhaps robbsbeach, the non-stop posting trailer court troll, will grow a brain or stop drinking heavily(neither are likely) before posting more ignorance or just go to night school and and finally get educated to learn the real English language. He could take a course in coherent composition or stop trying to put a bunch of lame, nonsensical ideas into a blender and hit the frappe button or quit being proud of his illiteracy........ or perhaps not..
After his latest fifty posts I think it is STILL safe to go with DEFINITELY not and I don't foresee it EVER changing!