I congratulate you on being in the upside announcement of the Esrx settlement.
ahhh, risk analysis starts with a financial assesment of risk, which was totally wrong, see stock S/P pre-announcement. Second, the terms of the dissagreement where publicy spoken about by both sides!! Third, Walgreens is being paid to provide a service that all the other contracted pharmacies provide. Nothing in the joint announcement addressed Walgreens issues.
As for the analysts understanding the financial impassee issues, they clearly understand Walgreens SG&A costs and the loss of a long standing billion dollar contract and the estimated financial impact that may take years to recover from.. Why else would Walgreens as many suggest, pay such high price for Alliance, with the uncertainty in the Euro marketplace.
I believe Reality set in and fear influenced this settlement. As for the Leverage Walgreens will be using in the Alliance deal this is a risk going forward and will affect cash flow, predicting this offset from the Esrx/Medco volatility in payment/cash flow and % of customers returning, Well this is the risk postion taken by investors with todays price.