Hopefully, when this occurs they will issue some public statements regarding their strategic use of this PBA.
Maybe they will even present some creative ideas. Good luck
My screen is mostly blank today.
Frontline, Thanks for taking the time to respond to my inquiry. Not having an MBA, I will have to study your response to try and fully understand your response, You stated that the "earnings guidance and actual earnings will look lower but are actually higher due to this tax credit". When the quarter was reported, some posters criticized the management presentation stating that the earnings were good. The stock dropped after what I considered a good report. Is the reason for the management criticism and the weakness in the stock after the report, related to a misunderstanding by investors of this issue. If not, what do you think caused the weakness in the stock.?
Thanks again for your insightful post. All imho Good luck
don't forget about all the cost reductions due to synergies in both companies. A distribution center for RAD could service WBA, thus cutting down on trucking costs etc. But I think the most important factor is the PBA...which WBA is after. I think the RAD management is excellent and innovative....and will develop many ways to improve same store sales. The RAD stores that have been upgraded and are doing well will also improve profitability for the combined firm. Don't forget with much of the debt eliminated, RAD stores today would be much more profitable. I believe that WBA and RAD already have had informal talks. I don't think Rothstein would publically state that WBA would be interested in RAD if he did not already have informal talks, as this would alienate RAD executives. All imho
Recently, it was reported that WBA might be interested in buying ESRX in order to obtain a PBA. It was noted in the article that because Walgreens had just purchased Boots, it was doubtful that it would be the target.
The reasoning was that ESRX has a very large market cap and this would deter WBA from doing another very large buyout. I looked up the ESRX market cap and it was 62 Billion. RAD which has its own PBA and all those stores is 7.8 Billion in market cap.. In my view RAD is the better target.....Much lower cost for the buyout and synergies for cost reduction from their stores. all imho Good luck longs
Its my understanding that the carry that the EPS was reduced by the carry forwards since the taxes were lowered by these items...therefore EPS would be higher if this was not done. Is this correct/
Is this the customary accounting practice or does the company have the option of not deducting the carry forwards from earnings (instead which would result in higher EPS. ? Good luck
Another cost savings would be the tremendous reduction in debt if WBA refinances or pays off a lot of debt with their huge pile of cash. all imho Good luck
Agree with everything you posted but I think we could hit $15 in 12 months. My reasoning is that after the EnvionX deal closes in September, management will be talking about their long term plans and describe the full potential of owning this PBA. I am not just talking about prescriptions being filled. I think the RAD management team will come up with some very creative avenues for using this acquisition. By the way, if you have read postings by Thefretgenie, he/she indicates that under a favorable buyout or merger scenario , a $15-$20 bid is possible in the not too distant future.
If you get the chance, suggest you read the post...its very insightfull.
My view, is that the value of a takeover target might be greatly influenced by the future potential worth by the acquirer and much greater than the value determined by the current stock price.
all imho Good luck
I am considering purchasing some PMCB which is trying to develop procedures to reverse diabetes and has other new developments related to cancer. Would appreciate any serious input. Good luck
Is it customary to discount carry forward tax write offs from earnings....that is eliminate from earnings the tax write off. Not entirely sure about what happened with the earnings report that disappointed investors.
Could management have posted the entire earnings, without taking into consideration the tax write off from the carry forward, and just noted it in the far corners of the report? Why did they not do this if that is acceptable. All imho Good luck
Agree 100% with your insight, particularly your comment that most shareholders would consider a bid
$10-$12 as too low. I personally believe that WBA already has had informal talks with RAD management since Rothstein has already mentioned in public his interest in RAD. If I were in Rothstein I certainly would not do this unless I was already working with RAD management. Action like that could create hostilities with RAD management or the board and/or trigger another company to make a hostile offer. if Rothstein is skilled in negotiating buyouts, he will certainly try to negotiate a friendly merger (friendly buyout). As you stated its better for everyone, shareholders and both management teams. all imho Good luck
Suggest you read the post "Rad is very much a target"
Suggest you read the response from superbowl
My thoughts are that the reason this phenomenon is that the executives know there will be a takeover attempt and they want to diversify holdings. They will be getting more shares via their executive contracts. In the meantime, they are thinking that they may not have a job if the takeover is hostile. So they are establishing a defensive financial position for themselves. Just a guess. all imho. Good luck
To clarify, the activist Barry Rothstein is going on the WBA board...who is already interested in RAD.
I think he will guide WBA in the negotiations. My opinion is RAD management will have to deal with a merger attempt (friendly buyout) or have a hostile takeover on their hands. All imho Good luck
RAD may not be interested in selling, the point is other companies are interested in buying. RAD management will have to negotiate with any company that wants to acquire RAD...weather they want to or not.
Hopefully, it will be a friendly takeover attempt....this could benefit the existing shareholders by radically increasing share price. all imho Good luck.
My posts described why I thought a takeover attempt was being put in place by WBA. I have not studied any information about the WBA law suit. I think that RAD is a better place to invest since any number of companies might try to buy it with its PBA.. Even if there is no offer, which I doubt, Rad will be a good stock to own ...with good growth over the next several years. If WBA starts any negation with RAD, the stock price will become significantly higher. Other bidders also might be interested and the share price might be further raised. My opinion is that some litigation in WBA will not effect the jump in RAD share price if discussions begin. I view the situation from an entirely Long point of view as a RAD investor. all imho Good luck