there were several hedge funds that owned over a billion dollars in Walgeens shares,
at $63.00 a share buyin these holding are in the of millions of shares.
This price is not stable yet..IMO
what staff.. at 165 million a quarter, I doubt Walgreens will have anything left but mcd's burger flippers.
Walgreens CFO stated he is cutting costs of 1 billion dollars at Walgreens by 2015 , meaning around 165 million dollars every 3 months, this will be made at store operations, management and operational spend.
In addition he is asking asking investors to allow a 15 billion dollar purchase + debt of 8 billion for a European wholesaler and retail pharmacy, who makes less profit on prescriptions but sells more in general merchandise like Wal-Mart.
As these reductions will provide a unique & filling shopping experience for Walgreens shoppers, who have been leaving Walgreens for other retailers in the last 2 years.
No specifics where release on how to measure this plan, but have faith from his planning skills.
I don't believe hedge funds take a positions of a 1+ billion dollars or more based on a single event occurring, such as a tax inversion.
Many of these funds employ some very smart people who calculate price outcomes based on variables in a Income statement, Cash flow, growth, ebita, debt, management directional strategy, etc. and take positions long or short in Companies.
As Walgreens management did hold a private meeting with large stockholders in PARIS and discussed operational planning with the combined revenue from this merger the numbers presented to these funds didn't add up without having more free cash flowing developing into this M&A merger.
I'm am not for USA companies inverting to a foreign country, but under the growth and cash flow Walgreens & Alliance Boots presented to investors, hedge funds took a investment position based not only on numbers they developed but the strategy presented in a private meeting, what ever that was..
That right, Walgreens stock will be retired into this new Holding company Walgreens Boots Alliance.
And guess what, it has the right to issue preferred shares, not just the common share Investors are holding.
But don't expect the Inversion planners to tell you as it will be in the fine print.
As the contract Walgreens entered into states shares will be given to Alliance boots and don't be surprised if these are preferred shares.
Walgreens inversion plan didn't wok out, so every thing is up in the air as how this is to be completed but if you are a stock holder keep you eyes on this Walgreens group.
As was reported in the NYT NO.. a contract was signed by Wasson and Alliance boots, the contract would be null and Void if it was changed and Walgreens would run away.
Yes, the shareholders could vote down the merger and vote Wasson and its board out , but that is unlikely
to happen due to insider access to the C-suite.
Who do you think sold today?? Granny with her 5,000 shares that her dead husband left her..
And who do you think the analysis work for You???
enjoy your reefer madness.
Buy at you own risk, This company's stock price was run up on a 4billion tax Inversion to be use to pay down debt or increase divi's , that is off the table now.
And don't try to sell me that Walgreens was not promoting this idea... until the hammer came down from the US officials and it customers Walgreens would have left.
If you want to get out now is the time..
As is the rule institutional trader don't have to settle there trading bill until Friday..So this could go lower
If you follow the news Walgreens Dumped it long term employees into the ACA run by another tax invertor Aon formally of Chicago..
fred Standard and Poor has not weighed in Yet.
as Institutional investors don't have to settle up cash for todays trades until Friday..
yes the Institutional traders get 3 day for settlement, and with Wag buying today..
This price is not going to hold.
Moody's places some of Walgreen's (WAG -14.7%) commercial paper and debt on review for a potential downgrade. The action from the ratings agency is due to Walgreens stock price
Wasson didn't even man up to being in on the Inversion plan.
And he made Wade the fall guy.. not that I cared for Wade..
I don't know its a done deal and neither do you.
There are to many broken parts here that are flying out of control.