Apple, Inc., the world’s most valuable technology company has $102 billion in offshore accounts and shifted billions in profits out of the U.S. into affiliates based in Ireland, where it negotiated a tax rate of less than 2 percent, according to a report by the Senate Permanent Subcommittee on Investigations.
So let me get this straight robbsbeach, you think this tax diversion by Apple is OK, but you don't think Walgreens has the right to consider inversion for tax purposes? I don't follow your argument. Please explain.
You paint a gloomy picture, but then that's what you always do. You have been consistently wrong. Walgreens has a large and talented legal and financial staff. The finance arm was moved to Switzerland a while back. They also have Pessina, the driving force behind Alliance Boots and now the largest stockholder in Walgreens and he is a director. Much of the talent of Alliance Boots will remain on board. The United States is saturated with drug stores. There is still some growth left stateside, but it's limitited. I would much rather see the company expand internationally than to expand into other lines of business in the USA. CVS is no doubt looking for a similar opportunity .
It's OK with me if, under the current law, WAG becomes a subsidiary of Boots. I want them to fix the law. I want the U.S. to compete with the rest of the globe. We have a powerful economy and the U.S. need not have the lowest corporate rates in the world, just reasonable rates. The corporate rate here is double the Swiss rate. If the difference were 20-30% Walgreen would not even be discussing the possibility.
Can you not read? I repeat, "A new tax law could settle the issue". I agree that any company that does business here should pay taxes here. So, fix the law. Don't rely on capitalists to volunteer to pay high tax rates because it's the right thing to do. Give them rules and they will happily obey, not because it's the right thing to do but because it's required and everyone else has to do it too.
I can appreciate your idealism. I don't believe however that people or corporations can be held to a higher standard than that set by the lawmakers themselves. A new tax law could settle the issue. The United States needs to lower the corporate tax rate to be globally competitive.76 U.S. corporations have inverted for tax purposes in the last 30 years, including 47 in the past decade. Washington needs to fix the problem instead of crying foul. By the way, Walgreen has yet to announce whether they will seek to move their headquarters to Switzerland as many stockholders have urged them to. You have joined the lynch mob, ready to hang Walgreen for a crime that hasn't been committed.
So, you think CEO and directors should be content with what the company is making and pass on an opportunity to increase shareholder value? You think it's okay for scores of other public companies to minimize their tax bills, but not Walgreens? Would this have anything to do with the fact you sold WAG in the low $30's and missed the run to $70 and now cannot bare to watch it run to $100? You have been negative on WAG for years and now you pretend to be an offended customer whose business Walgreens will lose. You are truly pathetic.
Your posts are forming a chart of their own. The trend is negative and I suspect you are a sneaky basher. I'll not respond to your whining again.
I own 5 stocks that are outperforming KNDI today. None of them have done as well as KNDI over the past year. Have you decided yet whether you are a trader of investor?....... important decision to make and live by.
That's a definite, maybe on the short covering. The likelihood in my mind was end of quarter purchasing by funds (including index funds). The rest of your scenario I buy into.
You want to believe the KNDI story, but today's action was a slap in the face. That line tells it all. The KNDI story is not about the action on any given day. It is about the cumulative action of several hundred days. If you continue to buy like a momentum player while believing you are a true long, you will be increasingly frustrated and less than prosperous. If you truly believe the KNDI story then hold the stock you have. If you want more stock, buy on dips. There are a lot of dips. Today was probably a fund or institution making a purchase. You can't buy very many shares of KNDI without driving up the price. Lot's of people jumped on board when they saw the spike with volume. When the volume died a lot of the gain was given back. This happens fairly often. If it follows the usual routine we will give up more ground on Monday. If you like to trade in your long positions then sell on a day like today when it spikes without news then buy back a few days later. Just don't trade more than 10-15% of your position because one day it will just keep going up and continue up for several days for a major gain. G'luck.
This type shows up from time to time. I think it's mostly disgruntled ex-employees. Walgreens has been profitably in business for more than 100 years and yet there are so many message board anonymous posters who think they know the business better.
Weak hands are selling but there are plenty of institutions happy to buy without driving price up. If institutions and funds get their fill we could still see the price dip over the next few days.
I think they would like to invert regardless of earnings. I'm sure they are stalling to further evaluate customer backlash, and political repercussions. I'm glad it's not my decision. If it goes bad, heads could roll. My sentiment is to go with it. Customers have short memories. Political considerations are out the window in my world.
I'm curious why you think an inversion is highly unlikely. Patriotism? Consumer reaction? I still think it's likely to happen. I suspect, that Stefano Pessina is a powerful force on the board of directors. He owns 8% of WAG and that number will grow when they buy the remaining 55% of Boots. He currently owns 18% of Alliance Boots. Unless the agreement requires him to divest some shares when Alliance Boots purchase is completed he could wind up owning almost 18% of WAG. I have no doubt he will be pushing for the inversion. Certainly he can't accomplish this alone. The other board members will have to be sold on the idea. It's a huge deal, and carries considerable risk. My feeling is the board members will find more reward than risk and move forward, but it can go either way.
I wouldn't call the miss huge, but a miss nonetheless. That didn't surprise me. Pulling guidance was very unlike WAG, and did surprise me. I can't help but wonder how long they have known those numbers would not hold up. Indeed WAG will give up some ground before rallying late in the year.