Let me first say that I'm dubious on loyalty programs. Between privacy concerns, spam, and the many cards in my wallet, they do not excite me.
With that said WAG is rolling out a loyalty program that takes the learnings of other programs, including CVS. I may be in October. So I'm encouraged as an investor that this may move tHe needle a bit. If consumers think its a good program, they will get a bump in market. But we will see. Sign up promises to be fairly quick.
I'm assuming the metrics that come from knowing what people buy can be used for better incentives as well as supplier improvement. I would also thinkthe CPG folks love to know the type of shopper who buys their soap and such.
What are your thoughts on a loyalty program? Game changer or yawn?
My neighbor saw a picture of him at the Boots WAG town hall in London with the C level folks, so assume yes.
I was trying to be polite to say you need a better search because I proved that CVS is in JJC's AA+ portfolio. Can you prove otherwise?
I must have a different search engine but most things I found have his Action Alerts portfolio with CVS as a position, or quotes from lightning round with a by, buy, buy.
Related to that portfolio, I found a link to a site that has his holdings. It's for charity that you need a subscription to. I'm surprised it hasn't been shut down.
I'm referring to his Action Alerts program where CVS is on it - so I'm assuming he loves CVS currently.
I can't speak to previous years of JJC's love/hate of CVS.
I have internal battles with Cramer.
I've been following him since mid-90's. He was the first blogger/message board poster and really opened my eyes to investing. He was married at the time and would talk about the Trading Goddess. In general, I think he's more good than bad. But I digress.
I have emailed him over the years about WAG, with no response of course.
1. When they lost the battle for Longs
2. When they didn't buy a PBM - Caremark
3. When they bought Boots
In each case he was bashing WAG in a manner that was not consistant with his normal stock buy/hold/sell preachings about growth, dividends, defense, or ability to execute etc.
As an example, he has not cared CVS debt is really high, just loves the company - pay no mind that PBM's have a slight potential to be hurt being the middleman in a few years.
In the most recent Boots case, he's freaked out over the debt, but missing the 120B enterprise size and free cash flow this will generate, on top of being the largest buyer of drugs, perhaps creating a new pricing tier.
Alas, Jim has made me money over the years, but has also cost me some cash by some of his unfounded concerns on others.
Pls change it to JMHUO. (U=Uninformed)
Why do you think everything is a panic? Why can't it be that ESRX was tired of explaining during RFP's that the costs are not lowered by excluding WAG?
Boots will make WAG a 120B in rev company and the largest purchaser of pharmacy. Pricing leverage will be a huge impact. JMHIO.
If WAG signed the deal with ESI back in November, it would have had catastrophic impact to the MHS deal. The current MHS deal with WAG would have been folded under the ESI pact and WAG would have been stuck with much , much lower profit for two of the three largest carriers. In that, WAG was better off in not caving.
Now what should ESI do? Soon, the CVS pact will be up. IF CVS plays hardball, does ESI come back to WAG and exclude CVS? There are only a handful of scenarios that play out here, with some really interesting downstream effects for all.
You and I might not want info delivered via text, or Facebook, but there are others that do. WAG wants to engage the younger age now and build on that.
The board meets every April, July October and January. Whomever post that this is some type of emergency meeting doesn't do homework.
Desperation? Ok if you were told you were not getting a raise or worse a cut in pay, wouldn't you cut back. Cutting 24 hour stores is a fairly smart cutback.
Good point that there will be misses on new ventures. I for one, would have voted against drive thru RX pickup. The think was to force all the RX the folks into the store, and drive thru would not do that. But didn't realize sick people prefer to not get out of car. Home run.
As far as electric, as gas is now near 450 it may be a catalyzt.
I doubt they would answer the MHS questions as its too forward looking, and loaded with what ifs that gets dicey in CCs. I struggle to short as you know they will be looking to fill the sales gap or yikes, reconcile.
I talked to a store manager last week and said there is a technology refresh coming. Which is a lot of money when you think of 8000 stores. I mention it as its not been cut from spending. I take that as positive.
I doubt the quarter numbers will be worse than .75. They made .80 last year. And sales did rise, slightly. We have 9 days to speculate. Are there any smaller chain stores out to buy if not RAD??
Therein lies the rub. RPH, the Hilton, can add value, and ESRX would prefer to not add value and head companys to Motel 6. I do not talk to my RPH, that's my docs job, IMHO. But WAG thinks with all this education and background they should be more than pill counters.
It's a solid debate, let's continue it.
If your passengers asked you to charge a penny them for driving, would you drop them, or keep them because you at least can count the sales?? If passengers refused to pay for extras or waiting time, would you still drive them? It's about what ESRX values the RPH, which they don't. This can change, but it looks like WAG wants to hold line on the value of the service.