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Валгрин Ко. Message Board

  • simpleawright simpleawright Nov 9, 2012 1:27 PM Flag

    Every Pop, I short more

    WAG will finish in the RED again...7 days in a row. Here comes a new record. Cover at $25 within 2-4 months.

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    • Cover at $25 within 2-4 months, really? In 2 months (Jan 9) WAG will have reported q1 earnings. While they will still be struggling with top line revenues vs year ago, net earnings should be quite good. All these generic introductions which contribute to lower revenues, also contribute to higher earnings via improved margins. That by itself will not light a fire under the stock price, but it will prevent further declines relative to the S&P. In 4 months (Mar 9) we should have two monthly comparable store reports which will now be comparing to year ago results without ESRX. This means revenues will be increasing and combining that with improved margins the street will be driving the stock higher (again relative to S&P, we don't know how the markets will be doing at that point). By the time q2 earnings are released in March I expect WAG to outperform the S&P by 20%-30%. I think the time line for further shorting WAG is rapidly diminishing unless the S&P falls off the cliff. I continue to increase my long position with monthly purchases.

      Sentiment: Buy