My timing was impeccable, as usual. :)
Glad to see it moving back up. Gimme $8.50, so I can short that half position again.
Good luck everyone.
"You also have to know that with our low cash position, mgmt will take advantage of the pop to do a cash raise very soon, perhaps within days"
15 days, to be exact.
Sorry to have been right.
Good luck everyone.
Actually, you'll get paid within days after tendering, depending on your broker. And no, you won't have to wait until Sept - they'll do another tender before then.
On Wednesday, Goldman Sachs analyst Robert Jones released a note reiterating his Attractive coverage view on the drug retail landscape.
The space should be driven by “compelling out year earnings stories, improving comps helped by ACA (1-2% sales/earnings tailwind), and company-specific growth drivers,” said Jones.
The analyst believes consolidation of generic purchasing should “combat margin pressure from lower reimbursement rates and competition at the front-end.”
In the note, Jones upgraded shares of Rite Aid (NYSE: RAD) from Neutral to Buy.
The analyst also has a Buy rating on Walgreens (NYSE: WAG) and raised his price target from $79 to $67 to “better reflect the earnings growth opportunity by the WAG/Boots combination.”
Jones has a Neutral rating on CVS (NYSE: CVS) and maintained his $71 price target and sees “the lowest relative upside from its generic purchasing JV with CAH beyond the $100M annual payment ( $0.02 /share for half of 2014).”
While shares of Walgreens and CVS are relatively flat, Rite Aid has jumped 5.6 percent on the back of the Goldman upgrade.
(Jones also upgraded MCK to their conviction buy list, by the way)
Retail pharmacy Walgreen Co. (WAG) is modestly firmer Wednesday, earning a price target hike, to $90 from $67, at UBS, which rates the stock a Buy.
Separately, Goldman Sachs, which also rates WAG a Buy, boosted its rating to $79 from $67 a share.
We'll take it. :)
Covered half the position at $6.33 just now. Might as well lock in some gains. Nice one day trade thus far. :)
Target is still $4.
Good luck to all.
In a note dated March 11, 2014 , Goldman analyst Robert Jones added already Buy-rated McKesson (NYSE: MCK) to the Americas Conviction List and raised the price target from $208 to $215 .
In describing his position on McKesson, Jones put a great deal of emphasis on the recent Celesio acquisition. In fact, Jones has modeled a synergies base run rate of $420 million ( $400m procurement & $20m tax) by fiscal year 2018. This is above guidance of $275 million - $325 million which Jones has called "conservative." Furthermore, based on a comparison of Celesio's segment margins to that of US and EU peers, Jones believes there is a possibility for another $150 million of SG&A synergies by fiscal year 2018 that is not included in McKesson's guidance.
Jones continued by commenting on the possibility for McKesson's to capture generic purchasing volume stating, "We see the potential addition of $2.5-$4.5 billion in generic purchasing from large McKesson customers that still buy generics direct."
To conclude, Jones listed his EPS estimates through to fiscal year 2018 as $8.21 , $11.40 , $13.41 , $16.11 , $18.93 .
I've covered half my position this morning at $86.31. Will probably cover the rest in the $75 range, give or take.
Good luck everyone.
Update: MW just extended their tender offer, and changed the price to $65, so it looks like you can actually tender now. FYI.
Q4 EPS of $(0.38) versus the estimated $(0.13) , missing by $0.25 . Revenue came in at $560.60M versus the estimated $611.69M . Sales were Down 8% year over year.
Thank goodness for the JOSB deal. :)
You won't be able to get $65 until it closes. The arbs will keep it slightly lower until then. You can take a little less and get your money now, or wait for the tender and get full price. Up to you.
It's not going higher.
Not a chance. That only happens when there's a real chance/interest from other parties, where someone might come in and make a higher offer. In this case, both companies have agreed to a price, and there aren't any other companies that appear to want to get in. If there were, said company would have surfaced already. The deal is done. Enjoy it, and stop letting your mind get ahead of itself. :)
Announcement released, now official.
Besides my gains, what do I win for calling the price to the penny?