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Walgreen Co. Message Board

emt8601 13 posts  |  Last Activity: Apr 17, 2014 10:21 AM Member since: Feb 15, 2012
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  • emt8601 emt8601 Apr 17, 2014 10:21 AM Flag

    here is my understanding of how the 3.8% tax applies, but I'm not a tax accountant so do your own DD:

    Say I have modified adjusted gross income (MAGI) of $225,000, which includes compensation of $175,000 and dividend and interest income of $50,000. The 3.8% applies to the lesser of (1) the net investment income of $50,000 or (2) MAGI of $225,000, less the $200,000 threshold for an individual, or $25,000. In this example, I would only pay the additional tax on $25,000 of my investment income.

  • emt8601 emt8601 Apr 10, 2014 11:33 AM Flag

    The bigger news for me is that RAD now has a foothold in Texas, the 2nd most populous state in the U.S. And, Houston, the 4th largest city in the U.S., is only about a 60-90 minute drive from some of RAD's stores in Louisiana.

  • Reply to

    Give this some thought..........

    by jkprice Apr 11, 2014 10:19 AM
    emt8601 emt8601 Apr 11, 2014 11:46 AM Flag

    The numbers that I've heard are that 7.5 milllion have signed up for Obamacare, but they don't know how many have paid. You're not insured until you pay. And 6.5 million lost their insurance coverage because the plan was not in compliance with Obamacare.

    A quote from RAD CEO on yesterday's conference call. See full transcript of Q4 earnings call at seeking alpha:

    "One thing that we can see, though, is that there is significant overlap between customers that we already had a relationship with and customers that are showing up in benefit plans that look like they’re attributable to the Affordable Care Act."

  • emt8601 by emt8601 Apr 10, 2014 9:51 AM Flag

    Rediclinic operates 30 clinics in Houston, San Antonio and Austin, which are the 4th, 7th and 11th largest cities in the U.S. Also, the state of Texas is either 1 or 2 (CA) in the U.S. in terms of number of resident military personnel. And I believe that WAG is still locked out of that market as a result of the Express Scripts debacle.

  • emt8601 emt8601 Apr 10, 2014 12:57 AM Flag

    Just to clarify, the numbers reflected are in thousands and are from RAD's 3/2/13 10-K. As for the valuation allowance, RAD maintained a full valuation allowance of approx. $2.2 billion against net deferred tax assets at 3/2/13. That assumed effectively that RAD would not be able use any of its NOLs going forward.

  • Reply to

    CAPEX

    by emt8601 Apr 10, 2014 11:53 AM
    emt8601 emt8601 Apr 10, 2014 1:35 PM Flag

    RAD's FY2014 CAPEX budget, as adjusted, was $415M, so they increased the CAPEX budget in FY2015 by $110M. That to me that is pretty significant. And of the approx. $420M spent last year, approx. $87M was for script buys.

    If they haven't already, RAD will provide a breakout of where they intend to spend the $525M.

  • All current Rediclinics are either located in or infront of an H-E-B supermarket store. I used to shop at an H-E-B store in the Houston area and it was the place to shop where I was. H-E-B is a privately owned supermarket chain, based in San Antonio, with 350 locations in Texas and Mexico.

    I could see Rediclinic easily expanding its presence in Texas through H-E-B.

  • emt8601 emt8601 Apr 9, 2014 9:44 PM Flag

    My guess is $0.88 per share with $0.08 per share related to Q4 operations and $0.80 per share related to the reversal of about 40% of the valuation alllowance for deferred taxes assets. The $0.08 per share for Q4 assumes a reveral of some of the $60M charge for LIFO through Q3. LIFO is always a wildcard in Q4. It also assumes that the costs to retire the old debt that was refinanced is not more than about $0.01 per share.

    The $0.80 per share related to the valuation allowance is a wild #$%$ guess. The amount ultimately recorded will be based on forecasts of future income and could be higher or lower than my guess. I'm not a tax guy, but based on last year's disclosure, I believe that the reveral of the allowance reversal could be worth as much as $2.00 per share. Any tax guys out there?

  • emt8601 emt8601 Apr 12, 2014 2:49 PM Flag

    My point was that MF articles are presented here as headlines, and some posters seem to take them as such, when most appear to be written by part-time amature investors.

  • emt8601 by emt8601 Apr 10, 2014 11:53 AM Flag

    "Capital expenditures are expected to be approximately $525 million. This number does not include the purchases of Health Dialog or RediClinic."

    This is pretty significant. I remember when mgmt dropped the CAPEX budget to $250 million to conserve cash. I'll be interested to see how much of the budget is allocated to script buys, remodels, new stores, etc.

  • emt8601 emt8601 Apr 10, 2014 12:35 AM Flag

    ace - I think that your DTC number may be a bit stale as is bigjmbigjim/.Scotty410's NOL number. From the 3/2/12 10-K:

    Net Operating Losses and Tax Credits
    At March 2, 2013, the Company had federal net operating loss (NOL) carryforwards of approximately $3,799,118, the majority of which will expire, if not utilized, between fiscal 2019 and 2022.
    At March 2, 2013, the Company had state NOL carryforwards of approximately $5,015,041, the majority of which will expire between fiscal 2018 and 2026.
    At March 2, 2013, the Company had federal business tax credit carryforwards of $50,080, the majority of which will expire between 2019 and 2021. In addition to these credits, the Company had alternative minimum tax credit carryforwards of $3,221.

    Valuation Allowances
    The valuation allowances as of March 2, 2013 and March 3, 2012 apply to the net deferred tax assets of the Company. The Company maintained a full valuation allowance of $2,223,675 and $2,317,425 against net deferred tax assets at March 2, 2013 and March 3, 2012, respectively.

  • emt8601 emt8601 Apr 16, 2014 10:33 AM Flag

    **** where was he when it was 22 cents, and coming back... ****

    In late Dec. 2008 and early Jan. 2009, Cramer predicted a RAD BK. I remember the interviews/videos. RAD hit $0.20 in Feb. 2009, but then refinanced its credit facility (I believe in April 2009). For years after that Cramer said he wouldn't get behind RAD until it had 2 consecutive good quarters.

  • emt8601 emt8601 Apr 12, 2014 12:40 PM Flag

    Well, at least this MF writer has degrees in Psychology. :) The last 2 MF articles that I've read about RAD were written by one with Political Science degrees and another with an Anthropology degree. I kid you not, click on the name of the writer. Why does Yahoo recognize articles from MF as Headlines?

WAG
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