% | $
Quotes you view appear here for quick access.

Валгрин Ко. Message Board

  • big.yank big.yank Jul 20, 2012 10:04 AM Flag

    WAG: 858.5 million shares outstanding

    83.0 million new shares issued to KKR & Pessina = 10% dilution.

    Share price is going to take a $3 poop, IMHO.


    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • cmxgen,

      EPS is the primary driver of share price. That and guidance.

      When the 1st part of the Boots deal closes in September, the divisor used to compute EPS is going to grow by 83 million shares, a 10%+ increment. That said, the next 8-K when FY13/Q1 results are announced will be the first to reflect the additional shares given to KKR and Pessina for 45% ownership.

      The earnings for that same Q1 will include 45% of the Alliance/Boots earnings, and the costs of interest and integration. There is no way, IMHO, that these metrics will contribute to enhanced EPS, other than by a partial recovery of the ESRX Rx volume which Walgreeens claims was not profitable.

      I would look for at least a 5% correction, or more if, as you point out, KKR or Pessina dump a lot of shares... a prospect I frankly doubt will occur.

      This was a VERY costly deal. It may play out well over the long run, but I think the early results are likely to be a drag on S/P for all of FY13 unless the flu season is much improved.



    • Those shares are issued so WAG can take advantage of Boots income.
      Are you out of your mind?
      Either WAG has to borrow money and pays interest or issues shares. However, benefits and profits that WAG gets are much higher than what it pays now or dilute its shares. I think your mind is diluted with some junks. You missed $29 and $30 with the same junks. When WAG is at $40, you will repeat the same junks.

    • See U at 40s in DEC

      You were warned about being short TOOOOO LONG.

      Sell PUTS to cover your lose.

76.05-0.74(-0.96%)Dec 30 4:01 PMEST