When I was in school, teachers not only expected us to do our homework, but to do it right. While it is true that PBM's have been squeezing rx retailers profit margins for more than 20 years now, they do it by contract negotiation. They can't change reimbursement rates every month or every quarter. WBA and Express Scripts have not negotiated a new contract in the past couple quarters so reimbursement rates reflected in the 3rd quarter report will be the same as in the 2nd quarter report. I see no reason for WBA to miss earnings estimates. In fact, the weakening dollar during q2 gives me cause to be optimistic about the results from overseas operations. Estimates for $1.14 per share seem quite conservative to me. I would predict a beat. You should go ahead and sell your shares if that's how you feel, but I don't think you should be giving advice until you get your homework right.
Ella Mae, you are your own worst enemy. When you forget, or misplace an item and have to replace it quickly, you will frequently get stung. Convenience store retailers do not offer the best prices. Walgreen's is both a convenience store and a discount store. When you plan your purchases and watch the ads and the trends you can do very well at Walgreens. They frequently sell their reading glasses buy 1 get 1 free, and sometimes buy 1 get 2 free. Walgreen's is a savvy retailer. They will frequently be the closest or the only store open and you might pay for that convenience. Many people have learned how to shop Walgreens by anticipating their needs and buying at promotional prices, thereby buying at some of the most rock-bottom prices in the retail world.
You are wrong. Company provided guidance for the year 2017, just couldn't provide clarity for quarter to quarter due to SONY issue. Full year guidance is for flat to -5% compared to 2016. That means $0.80 to $0.97 (34%-41%) above previous guidance. That is superb guidance, and having listened to the full conference call I would say it only gets better in 2018,2019,2020..........
When you compare a dividend to daily stock price fluctuations you are thinking like a day trader. If you are a day trader then you should not be concerned with dividends. As an investor however, dividends can be remarkable in their influence on gains over time. If a company consistently pays a dividend of 2% and the stock price goes up an average of 4% per year then the total return to the investor is 6%. The dividend increases the gain by 50%. The fact that the same stock may go up or down by 3% on any given day has no real meaning at the end of the year if you are holding that stock. My father-in-law purchased $200 of Detroit Edison stock in 1970 and sold it recently for $25,000. On the basis of stock price increase alone it would have been worth less than $1000. The difference was dividends. Edison paid dividends consistently without fail for 36 years and as a result his investment grew to 25 times what it would have been without dividends.
Fabrications are harmful. Don't mislead persons naive enough to believe you have inside information. Guidance for next quarter will not be released until conference call at 4:30 PM EST.
The Walgreens/.express scripts dispute ended 4 years ago. What does that have to do with Walmart and Target? What does it have to do with anything in 2016?
Yes, that dividend is very nice and the company has a record of increasing dividend every year. Even more impressive is they yield over 4% with a payout ratio of just 33%. They can easily afford to continue increasing the dividend. With the stock buyback program and continued profitability we should see equity growth also. Beats the heck out of junk bonds.
Walgreens leads the industry in sales per square foot, sales per store, sales per employee or just about any metric you can come up with. You are either blind, lying (exaggerating) or working in in the 3 AM to 5 AM time frame.
You held the stock while it went down $1.17 so you could collect a $0.36 dividend, and you're calling those that sold idiots? LOL! Hopefully, most investors are not influenced by a single dividend while making a buy/sell decision.
yeah, they lowered guidance for the full year due to acceleration of generic drug deflation. ABC could benefit in a big way though if FTC give Walgreens green light to acquire Rite-Aid. That would be about 4000 additional stores for ABC to distribute. This is a strong possibility, though a little too speculative for management to discuss at this point.
Yes, it's a significant number of shares and a significant portion of KKR's holdings. I'm a little surprised though that they waited this long and are still holding 35 million shares. KKR does not usually hold long term after they cut a deal. They tend to stay liquid, and ready for the next deal. Apparently they think WBA shares are worth holding in the near term.
I think the RAD merger is a good deal for RAD and for WBA. Don't know your reasoning, of course, and a lot of people share your opinion but I believe when you consider the dynamics of a RAD/WBA merger and it's impact on ABC (WBA owns a $5 billion stake in ABC and is set to exercise a lucrative option for another 22.7 million shares next spring), WBA comes out smelling like roses. The value of ABC's shares (including those owned by WBA) will be far more valuable when they take over distribution to 4500 former RAD stores. McKesson is the current wholesaler servicing RAD. Avoid their shares!
I agree. I was not implying that WBA needed the deal to go through. They just need the matter settled one way or the other, yes or no. That will provide some clarity for would be investors.
I don't get CVS either. The stores are unappealing and it is difficult to find what you want. They don't carry. much. I think they manage to drive some rx business into the stores via their PBM. That's about the only edge they have got, except for some good locations around the country.
Sure, it's not been pretty for those getting in recently, but that's not an unusual situation. After a big run-up in price it is normal to have an extended period of consolidation. Microsoft, IBM, Google, Apple and Amazon have been huge winners over time but they all had periods of "rough times" coupled with price erosion.