The prospect of this inversion is ridiculous for Walgreens/Boots to consider. The people at Goldman know that but they are here just for the transaction revenue it can create while this is going on. Think about this. Walgreens is a 100% Consumer Based Company....That is a completely different scenario than GE, Caterpillar or some other large conglomerate taking operations or manufacturing oversees. Walgreens is a name and a place where almost all Americans have done some business...How many GE or Caterpillar stores have you been in lately?.....The consumer is very brand loyal and still very American. CVS will have a heyday if they can advertise that they are an American Company paying and supporting the US Tax system unlike their competitor, Walgreens. To me this looks more like a power struggle with Boots trying to gain an upper hand in the management of the company. Walgreens has lost two PR battles in the past 4 yrs...They lost the battle with Express Scripts and CVS came out on top in sentiment with their move to stop selling tobacco products. The financial saving in tax that this move would save would be lost in quick order. Walgreens revenue in the US would drop quickly and stores would have to be closed......maybe that is really what Goldman and the folks at Boots would like to see happen....Interesting one to follow here
The first thing they will do is unseat all that cash and then sit on it...a company in their position (losing money) will not buy back stock or pay a dividend.....they won't acquire anyone....If anything they might be acquired...lowering costs(headcount and facility reduction) makes their position more attractive to a suitor....none of your three options will never happen
I agree, this is positive for all but the 520 souls who lost their job. Cost cutting is necessary if you are looking to be bought...Lower the costs and headcount. Makes it much more attractive...Someone gobbles this up and can absorb the lost workers with their current staff....There has been speculation on this board for sometime about a buyout....This would be a logical first step.....If internet gambling makes it through Congress this is a nice target for a large Casino operation.....Games alone may not be enough. If Gambling passes, they need to have their costs in line....I think this was done with future suitors in the hunt
If he doesnt resign he should be forced out by shareholders and the board. How can such pertinent information be presented at a conference and not in a public press release. Does this guy not know he heads up a PUBLIC COMPANY?. We just got through a set of class action shark attacks and now he has put more blood in front of them.....HE IS OUR CEO.....We need some PR help...This is a great company with great prospects for the future and this young gun PHD keeps shooting holes in the shareholders confidence and wallets....LET MAKE A CHANGE.....This should have been made public to everyone Jason....NOW get those margins up....
Sentiment: Strong Buy
Spoke to Lona Cornish this morning....She immediately told me Ed Smith would have to answer my question.Of course all I could do was leave a voicemail,as he was not taking calls. That was some two hours ago and I still haven't heard back... I don't expect that I will hear back.......The do owe us and explanation....
Here is the press release when they mentioned year end results on 56...we get the information on May 10th...9 days after the stockholders meeting....very fishy wouldnt you say?...
Remember the good ole days when the words "Fast-track" were in our vocabulary?...Wait, it is still possible.."fast-track to oblivion"...
We need action quickly...are you reading this Lisa...?...Pass to Nic
Holding for now....This is the last speculative stock I will ever invest in...I do feel we got a raw deal with needed information being held only by "those in the know"...We voted our proxy without being given the full picture...Hopefully the reaction by everyone and continued pounding by shareholders will get the BOD to change there view of NIC and convince him a partner is needed to save the company.
What was your purpose on calling Lisa?...she didn't say much....what were your question?..
Placed a call to Lisa Friday morning. I was surprised to get a call back within 2 hours. I had two questions for her.
1) Why such limited information on 60056 update?..Why didn't we get more information(i.e. conference call),so we can draw our own conclusions. Those conclusions being, how bad were the results and is partnering something we feel has a chance of evolving.
She said there were no results to discuss. We halted the trials and stopped enrolling patients once we saw the concerning blood pressure readings. We didn't take the trial to conclusion as the the cost of a prolonged timeline requiring higher dosages was not something the BOD wished to continue. We will look for a partner to take this further.
Sounds to me like these results were known long ago...My opinion is this: they thought the share price would go up on the 63 results and they could fund the additional adjustments and testing on 56. The drop in share price(after 63 results) caused them to drop further testing and funding. Remember, they committed originally to have these results by year end. I think this information was known by year end and they waited for 63 results to tell us....that's when things blew up...
Quesion 2 for Lisa,
The two big drops in price after both updates on 63 and 56 and how this will change things going forward.?
She reminded me of the quick runup in the stock price from December to Mid February. This runup came while there was no real news. Those that bought had intended to "sell on the news"..all the selling was done by individual investors there was no institutional selling...She did mention that there was a small pullback and a lot of concerned voiced when the reverse split vote was mentioned.
As for going forward: We still feel 56 is a viable product and will continue to look for a partner...on 63 our plan is as before..Keep in house all US rights and License out the ROW......
No indication of any change in plans, but keep in mind this conversation was within 24 hours of the 56 announcement.
In conclusion....Keep calling and keep writing....she is listening but not sure NIC is..On May 3rd I sent an email to Lisa about 56...I pounded on the poor communication and the missed timelines for updates. I specifically mentioned 56 as the product that got me started on following poly. The communication on timelines and updates were lacking..I said that the delay in information on 56 makes me think the results are bad....On May 10th I had my answer......
Blue, do you really think those dates you have put out for us are realistic? This company has missed self imposed dates by over 180 days in the past. I think you may be correct that the time line being drawn out is a factor in the price drop....They have lost all credibility with the majority of the narrow number of investors whey have. Where is the "year end" data on 60056 we were told about last fall. ?....Can you imagine if they are as negligent with possible partners?......The groups in PA needs to wake up....give us something of substance
Unless there is a press release Monday morning, Nic will not be able to tell us anything new in his presentation. We don't want to see Nic get in trouble..Lower your expectations for Monday....but not for the coming weeks.. The company will tell us in due time
Please get your facts straight...we still had the 91% top end tax rate through the Eisenhower term...it started to work its way down in the sixties...those were the times when jobs were plentiful...Think about it..if you were going to pay 91% in taxes you were going to cap your earnings..why give that much to the government...it did two things..it kept a cap on what people were willing to earn...and second, business owners wouldnt take big bonus's ...they kept the money in the business and expanded..upgraded...and HIRED PEOPLE...this talk is all Malarky about the top tier being job creators...the only job it will create is the extra hours given the the service that services, parks, and cleans their yacht.....by taxing the hell out of their income it will keep it in their businesses and that will create jobs....This whole republican theory holds no water....I am sick of Fox and their broken record rhetoric on this topic
Your Edward Jones story sounds very similar to mine Brock...I rolled over my 401K to them when I lost my job and also managed an elderly Aunts portfolio with them...I remember a case where to raise cash for her I sold 1000 shares of Pfizer....one transaction for $19,000...to a long time customer (she was with them for 10 yrs)....Commission was $382.......no advice given..non solicited transaction...what a rip it was...that was the move that made me move everything under my own control at Scottrade...that "mass exodus" Scottrade commercial is very true...Brokers don't add much value for their very high fees...still sitting on 200 shares of Valero he solicited me on at $49 per share... he did have a few winners...but Ihave had many more on my own...and feel much more in control....
Some months back I had stated a doom and gloom scenario for this quarter. The receivables and inventory are the key numbers in the upcoming results. The Best Buy account is a loser for them(bottom line). Will they have enough to offset the damage that one customer inflicts. The balance sheet will show....I am not expecting the numbers to be good at all.Their forecasts will be good but the current qtr will be nothing like what some of you are expecting....In the 6's or lower after the earnings report....I have no skin in the game as I was out months ago...but I like to keep an eye on the ones that I had success with....For all you posters, I hope I am wrong....in a few days we will know..
2014 Until we get the results....The Obama Admistration is tinkering with the FDA guidelines and we can't expect movement until he is out of office...Right Suze....cmon...get real...promise that this is my last dig until you say something new that is so irrelevent
Thanks to Suze for putting the pressure on Nick to get this press release out "pronto"...the timing of her call and the release of this information is not coincidental.....NOT