Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Nathan Fischel and Fariba Ghodsian:
It is Time we send DSCO's management & BoD's a message from us investors.
Produce some earning/sales results or we will replace you.
Thank you
GLTA!!!
Alstrom and the French need GE
GE brings good things to life, I'm loving it.
The Investment bankers and M&M's are sitting on there butts
with a ton of losses in Corporations with no Earnings.
GE is a proven Global leader with real earnings and the Investment Bankers and Market makers are proven "To Big to Fail" Global Idiots.
GLTA!!!
John G. Cooper you need to retire:
I and many others have supported your butt for the last 5-6 years,
and what have You given back to your investors..????
Anyone else here willing to join me in sending a message to DSCO
that its time to find a partner before this drug falls off of patent.
GLTA!!!
Wickedone Thanks;
I sitting this one out, as I am not seeing a Global growth outlook moving beyond current economic predictions.
The Commercial real-estate rollovers IMHO are sucking money out of the financial system, and private employment growth with Health Insurance benefits is declining.
The market makers are calling for tax Inversion's of several US corporations, and I do think this will occur for some companies and this move would be an + for your investment.
I do agree with you on your longer term outlook should this occur, who would have ever thought that Walgreens. Co would have given a majority ownership to a company they where buying out.
Walgreens in my view is now being controlled by the Market Makers so who knows its outcome.
I have instead been investing in the M&A/Buyout sector of the Rx Market as well as Drug Manufacture's in phase3 of clinical trials.
I think there is more upside here..
Good luck..
Dsco is a sales target:
Biotech is very hot in the M&A sector, and Dsco has a FDA approved product.
Unfortunately DSCO's management and Bod's are content is doing very little while making bucks.
We need an activist investor to shake things up at this company and get the selling price to $5.00 where it should be by now.
It time to start tweeting Carl Icahn and Bill Ackman.
GLTA!!!
The Market Makers Push into Inversion:
As Walgreens stock price is continuing to rise the Inversion push by the Market Makers... will leave Walgreens managers little Choice in this Inversion decision.
The Tax saving of about 20% on Taxes paid by Walgreens can not be made up by selling 1 more suppository or blonde hair dye.
So Inversion is my directional guess as well as a corporate restructure.
Forward P/E and S/P levels are at a all time high, even though net earnings are not increasing and indebtedness is being accumulated..
The current push in Walgreens stock price is not based on forward growth of net earnings it is based on a reincorporation move to a Country with a lower Tax rate and more downsizing..
I'm sure there are legal and accounting groups working on this inversion 2 step process as we post and the leaking feed back is showing-up in Walgreens SP increase.
The question is should you be buying or selling at this lofty level on the market makers push?
GLTA!!!
rockhunter's 8 ball sees 90.00 for Walgreens.
I question how you see this run and FS as Walgreens and Alliance boots incurs more and more debt that will run up against higher interest charges in 4Q 2014-2016 as Rx and services medical reimbursement payments are faced with cuts globally.
Should AB gain control of Walgreens.Co, I am thinking that this retail operations will be sliced and diced to fund global expansion.
As a investor I will ask you for a rational explanation to this projection???
GLTA!!!
Walgreens Without a Rx Wholesale Division.
A Tax Inversion for this US based Corporation is the only way forward to increase its earnings, after losing its Warehousing ability to purchase, Store and Ship Rx medications around the U.S. at the lowest possible distribution cost.
The Market Makers are betting the U.S. Congress is so entrenched in political warfare that loosing Walgreens U.S. tax Revenue from inversion will not matter as long as these politicians become re-elected.
And I am in agreement with the Market makers.
As the 1st Q U.S GDP growth has been readjusted downward Walgreens earning outlook and growth projection will also be downsized, from what was presented to the financial underwriters..
As it has appeared with the layoff of a recent senior V.P. now working for a PICKEL company.
I except more senior layoffs this year as the second step in A-B approaches and then a new organizational/business plan.
Will the layoff be at the current Presidents positions of Walgreens remaining divisions
and Will It work??
Walgreens has become a day trade position at this price ..
GLTA!!
Excellent idea to sell puts and long calls.
I agree, there is very little doubt that Walgreens growth plan is based on Financial engineering and not this managements work in creating Value.
The big Investment players also are enjoying this leverage as long as they get paid.
Yet, U'r Topix site shows a different picture inside the store operations than the one being projected by Walgreens management,
What is your thoughs on how many month out{time} do you think one should place a put on.
Good hearing from U
GLTA!!
Additions to Walgreens revenue:
Well the sale of Walgreens HQ campus is an addition to revenue.
How about the reduction of Staff that worked in the Walgreens Rx warehouses... that ABC is now taking over.
Add in the dollar cost reductions from announced 76 stores closing...Staff, Utilities, employee benefits, Insurance payments and write offs.
Lets add in Income from the sale of Pharmaceutical to ABC that Walgreens was holding in its inventory.. that is a nice one..
Walgreens Recently purchased Rx files from small pharmacies.
and//'''...
Alliance boots purchase of a chain of UK independent pharmacies.
How about purchases from A-B by Walgreens for cosmetics that have not been sold yet and are sitting on it overpriced self.
Let also look at the refinancing of A-B Bonds .. we can add that saving revenue into increasing cash flow..
Face-it U'R are looking at financial engineering with the hope that Walgreens Rx market growth and its retail offerings will continue.
Walgreens stock sales volume Month over month trading.. is not growing.. Wag as well as other stocks are seeing less trading volume and high bid offer spreads...
Well that is what I see and many other have commented on.. that this market is over-valued
Glta!!
Here Comes Walgreens Run up!!!
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10839955/Drug-store-chain-Walgreens-bids-for-early-Boots-takeover.html?r=4114G2511690G2X
Walgreens HQ has been working overtime to print up all the new issued stocks needed to complete this merger.
Don't expect any comment from Walgreens HQ on this either!!!
As a few large Institutional Investors have been consulted on this press release, I would think..
As Janas stated in Vegas they are working with Walgreens behind the scenes, so much for public disclosure..
American Banking and Market news:
http://www.americanbankingnews.com/2014/05/19/walgreen-company-target-of-unusually-large-options-trading-wag/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+AmericanBankingNews+%28American+Banking+News%29
Good Call Wickedone, as for Wasson being a Bagger that is his claim to fame as he should be shown the exit in the pharma. industry.
Wasson has now Bagged-up 3 Walgreens divisions and sold them off because he was unable to develop these business... PBM, Long term Care and his Crowning achievement.. Walgreens Rx Wholesale Division that was the Heart of Walgreens 100 year success story now is being dissolved.
Wasson just reward or Karma as B.Y would say
is being "appointed" not elected as junior director at ABC Wholesaler with-out a committee assignment. LOL
As for Seffano Pessina I don't disagree with you on his success.
however the facts remain that Financing for the 2nd step is in Walgreens Co. control and for now the 3 bagger employee is the CEO who was appointed by Walgreens Board of Directors to lead this company..
GLTA!
Hey Wickedone:
Long time no see. Whats up?
I agree, Pessina is looking for an Inversion and cut Walgreens bloated operations.
But right now S-P is not in the drivers seat, until the second step is completed I doubt if you will see any structural changes, or a operational turn around.
Wasson has nothing left to justify his position except the retail operations and the Internet sales, he sold the PBM, sold the Long term care Rx op's, surrendered the Wholesale Rx Operations, so what has he left to justify his salary.
As Yank said Walgreens is ripe for expense reductions, if and when a operational change occurs I would not except this to break-out of this trading range.
Also as the market is deflating I would not be bullish at this level.
If KKR and A-B were not involved Walgreens would be trading at 38-40.
This current price works out fine for the Maket Makers with the news cycle, Janus, GS, KKR, JP Morgan ect. who trade this stock every day and scoop up cash.. on the Volatility.
I would not except to see any large Buyout's either after the merger as the Bond Market/Creditors are not seeing growth, M&A's have been the only growth revenue, with cut, cuts, cuts as I have heard from the Pharma folks, also the Global Governments payors are struggling with Healthcare spend so big payouts on Rx are just not there...
Come back soon,
Regards.
Alliance Boots Cuts Bonus Pay:
http://www.thisismoney.co.uk/money/news/article-2630204/Boots-scraps-staff-bonus-scheme-time-10-years-despite-profit-rise-promise-directors-not-bonus-either.html
As, I post facts and not speculation as some others do, the Facts are compelling this was done so Alliance Boots could add additional revenue into Walgreens next earnings statement.
Just Think, who will gain the most when the second step is completed, additional shares will be issued, debt will increase and dividend stock holder will see very little or possible no gain from these synergies.
Walgreens has partner for over 1 year with Alliance Boots so where is this Increasing revenue being returned to shareholders???
Its being returned Through the Greater fool theory, other wise Walgreens Dividend would have increased through it's reported earnings.... which has not happened..
Its time for a activist investor to be stepping forward but as long as Walgreens has passive investors(Mutual funds, pensions Etc.) who also are holders of its Debt don't count on this happing.
The Market Makers, high speed traders and Hedge funds are Content with these price swings with no increasing Dividends.
I question a crappy ROI dividend for a company That has had a 100 year head start in the Rx sector.
GLTA!!
Buzz or Hype?
Yep the rumor mill is working hard today,
but the truth is the Volume of Investors is not there
to stay at todays jacked-up price.
The greater fool reason states the are always greater fools to buy at a higher price, well the greater fools are not showing up this morning..
GLTA!!
Till to sell options:
Walgreens will see some more downside, should you care to still own this stock sell some options at todays strike price you will be able to enjoy the premium and not worry that someone will buy this at the current inflated price.
GLTA!!
Walgreens is Over Valued;
CVS is over Valued also.
The media is not saying this, I am.
With Walgreens trading at 67+ dollars a share and retuning a 1.90% Yield, the market makers are moving away from Gross Earning and into returns on Invested Dollars.
And Walgreens is not making it at this level for the downside risk involved.
As the US GDP growth has been readjusted downward, dividend returns are becoming the players for the market makers invested dollars.
When the Market makers look at the GDP number and see a return on a 76.00 investment spinning off 1.9% vs a At& T selling at 36.00 paying a 5% dividend it is not to hard to understanding the Risk that are in play.
Until GDP & US employment picks up I except to see this sector Big Retail Rx to be sold off at this lofty level.
This is compounded with the Pressure the State and Federal governments are under to keep Medical costs down from such a low GDP growth.
The access to finding a needed medication has now declined with several large Merchants selling into this sector as they are not dependent on Rx sales they will use low prices to increase in-store traffic..
GLTA!!!
A Rise in Interest Rates??
I think you have your Answer backwards a rise in interest rates helps debt Valuations levels.
With a Gov't bond.. having a higher interest rate..means less people are buying them... when the the Gov't increases the return paid to a investor, this creates more investors.
So the higher the interest rate the more people will purchase a bond.. until the demand exceeds the limited offering.. at which time interest rates will fall if demand is outpacing supply of a issued bond.
Devaluation of a currency occurs when to much money is in circulation for the goods and services being produced/sold.
This is based on a countries GDP growth ability and the infrastructure of a country that can support expansion. roads, water, electrical and credit ..
A rise in interest rates is bad for GDP Growth but it is not bad for
hard assest such as land, food, and lenders of capital.
More money returned to the lenders for less work on the lenders part...
Ge is a very underpriced stock..
Cantor see's this coming:
http://www.theflyonthewall.com/permalinks/entry.php/WAGid2012046/WAG-Walgreen-Boots-increasingly-unlikely-to-hit-FY-targets-says-Cantor.
But, others see this going to 90.00, and the Hedge funds who are meeting this week in Vegas feel there is 10% more upside to this market or a 25% pricing correction, Which I have been saying.
Congratulations, I see Wassin was elected to the ABC DOB, perhaps they will appoint him to the Inversion and Risk Planning committee.
It might be time to short ABC..
He He..
GLTA!
Bottom fishing for new Investors:
http://seekingalpha.com/article/2218093-lowes-vs-walgreen-which-retailer-is-best-for-shareholders
Now can any of you more informed investors tell what is wrong in this article.
There are several misleading pieces of information, that a new Investor would not understand, and believe this is a fair comparison.
News moves markets but the TRUTH moves history.
GLTA!!
The Fed's have a view point:
"The Federal Reserve warned it may need to take additional action to rein in banks' funding of corporate takeovers after observing continued deterioration of lending standards this year".
http://finance.yahoo.com/news/fed-warns-crackdown-takeover-deals-214000797.html
Now, looking at Walgreens 2 step for the Alliance Boots takeover, it is being reported/explored that a reverse takeover may occur where Alliance boots takes over Walgreens.
As Walgreens has a legal, large off balance sheet debt with all of its NNN leases, these debt liabilities do not appear in the financial reports. foot notes in the Annual report excluded with some math needed by the investor.
In a recent revelation Walgreens management found 76 store locations underperforming and has announced Closure of these stores.
This leaves these Geographic market location customers up for grabs by its competitors, this move add no revenue to Wag retail model.
This move also reduces its operational costs/expense, Traffic flow, and blow a 1% hole In its convenience model offering that is reportedly a traffic driver, and worked in a less competitive market.
A case now can be made for a divesture of owning all the 8000 brick and mortar locations and build a Rx end user model based on a franchise system as Alliance Boots has done, with lower operation expense with higher net revenues.
Alliance Boots is a Wholesale model with retail and franchise owners.
ABC is now the sole distributor of RX medications to Walgreens.
And ABC should be viewed as the value creator for Drug stores.
In the business of returning Value to Investors I think you will find that Walgreens retal restructuring is far from complete and its major stock holder will have a lot of input going forward.
Uncertainty is the broker Dealers friend.
GLTA!!
Walgreens downgraded at Cowen & Co.
Recent speculation on Walgreens Inversion and reports of Walgreens moving its Corporate headquarter to Chicago has triggered financiers to look into Walgreens long term debt obligations and synergies projected..
The Alliance Boots recent purchased in Mexico, Walgreens debt obligations to Finaciers will increase as it moves into the second step of the A-B purchase.
Could this trigger a credit down grade and increase its borrowing costs, effecting earnings?
A-B having Wholesale Rx and OTC operations in Russia with the decline of the Russian ruble must be impacting A-B earnings.
Perhaps this was a factor for the Mexico Rx purchase by Alliance Boots..
GLTA!!
Gee the retail Rx sector down today!
Alliance Boots 2nd tranche:
If/Should Walgreens complete the 2nd step of the Alliance Boots buyout the estimated cost will be 9.5 billion in cash and stock and a estimated $9 billion dollars of debt/notes.
18.5 Billion estimated total.
Add into this estimated amount a sizable cash injection into Farmacias Ahumada S.A. (“FASA).
Should you care to visit Farmacias Ahumada stores on google, see them for yourself.
Just think about all those Mexican returns coming back into Texas, Cal. Arizona also.
Alliance boots as well as Walgreens is banking on the sales from it manufactured private labels and Boots cosmetic's, to fill the gap in loan/Bond repayments as well as the cost cutting synergies they have announced.
Yet sales growth numbers in the US, of Boots cosmetics or private label offerings have been left out in any of the Walgreens conference calls or Investor presentations.
And, I don't believe this metric was overlooked either..
Perhaps this has been discussed with the covering analysts but not with the public.
One of the magic tricks Executives use in a M&A is unlocking synergies in lowering costs, but after 2-3 years all these have been unlocked and the only thing remaining is revenue/margin growth to meet the M&A's incurred debt obligations.
And the Bond payments are always due.
Now look at the Bonds Walgreens sold in the first part of the A/B M&A, Bonds will need to be issued for the second step, do U think these will be with lower payment terms?
Walgreens had a bond A rating in the first step, they now have dropped to a B rating.. which will cost more in interest payments.
And that is why a tax inversion is being discussed.
Some Investors see increased revenue going to Walgreens shareholders, I see this going to the bond/note holders and the executive and non executive stock holders with the Market Makers who will capitalize on Volatility.
Just look at Rite-aids missteps, these investors wound-up in penny land several years back, around 5 years ago RAD was selling at 80c a share
Nice run-up from 32.00
GLTA!!
Hey B.Yank:
I will say that a stock that is stuck in a trading range is a sheep that will be sheared, over and over again by the Market Makers and the Hedge Funds, and that's what I'm seeing with Walgreens.
And this Inversion debate that keeps popping... up will soon get front page press coverage as Walgreens moves into this direction.
Deloitte knows this and played a a part in the Chile buy-out by Alliance Boots.
Mr. Pessina will take over the Leadership of Walgreens as Wattsin is being be moved out, and I must say It's not soon enough..
However, Debt will be incurred as Stefano builds out his vision and running a public Corporation is not his strongest point!!..
Will Walgreens go private???. Oh yea, and my final wish is Mr. Roberts kicks these Walgreens exec's in the @ss on there way out..
GLTA!!
Will GE bring the TVG to the US.
Yep, that is part of the reason Alstom management & Board is aligned with GE.
The US has no Bullet train that goes 300 miles pr. hr.
When this deal is completed and I believe it will be, the French and the US citizens will all be thanking these two companies for merging.. and bringing the US commuter trains into the 21st century..
China will be buying products from these merged companies and the power generating expansion they will bring as Europe moves away from Russian energy. WOW .. don't get caught on the short side of the stock..
GLTA!!!
Deloitte and Farmacias Ahumada S.A:
As Alliance Boots is now purchasing Farmacias Ahumada S.A, an awaiting Gov't approval.
Who did the auditing for Valuation, was Deloitte, called in and if so was the amount of money needed for integrating the IT system for distribution presented to Walgreens.
This will not be a cheap merger that Alliance Boots has undertaken
in Chile and Mexico, as conversions of IT will need to take place and integrated into alliance Boots Distribution Channel.
The currency conversion will also become a part of Alliance Boots current operations.
As for Walgreens Investor, you will paying this bill after the second step is approved by the Shareholders.
GLTA!!
C is well position in the Ukraine Crisis:
As the Ukraine crisis continues and Europe becomes less dependent on Russian energy C is well positioned to become the largest European middle man in Energy exchange rates.
GE purchase of Alstom and a build out of France supplying addition electrical to its fellow Europeans will require financing and C is in the sweat spot for lending funds.
GLTA!!!
Alstom is a go!!
The French gov't is in the final stages of approving the GE offer.
This will rock the European Market as France will lead Energy and public transportation development when combined with GE.
I expect GE to break-out of its low price range when this merger is approved.
GLTA!!
Yes what B.Yank said is True:
And every time Walgreens makes a Rx file buy or Pharmacy buy out.. it does not report the number of 90 day conversion they switch on the folks who's Rx(drugs)files that where purchased and converted into 90 days.
As for the in store customer counts going down.. I would bet that this Rx 90 day conversion plan is headed for Debtors Heaven, and will soon take a seat next to A&P, Sears, Woolworths and ENRON..
LOL. This magical direction is heading into the private equities market... loans sharks, who have with a re-orginazation plan, With-out the current stockholders..
So ask big.yank about Rotec.
Oh yea, I must tell you that CVS has a SEC. problem heading its way also ..
GLTA!!
Farmacias Ahumada S.A Debt!
This seems to be a concern for Moody's.
Yet others on this Board have avoided many questions on how Walgreens books its reported revenue.
Well how is Farmacias Ahumada accounting for revenue???
This is south American book keeping after all, I'm sure Walgreens CFO understands this magical art..
The last news article I read was that Ahumada was in need of cash flow.. Just like Walgreens..
I would think Walgreens lenders promote this as a Win!
GLTA!!!
Did you read Moody's WARNING
Walgreens will include Alliance Boots debt in Tranch 2 which include AB recent purchase announcement.
Walgreens executive made commitments on debt levels when it purchased A-B.
The creditors will not be happy with Walgreens M&A management team.
Mail-order with optional store pick up.
In store pick up is recorded as traffic.
As for Hospital bedside that would be booked as a in-store sale, as the billing/Charge would be generated by the store delivering the medication.
Someone needs to ask Walgreens If the increase in sales was from the Selling of Worksite locations..
Final Answer.
Did you see the manipulation of several stocks yesterday after hours?
GLTA!!
Breaking News:
http://www.chicagotribune.com/business/breaking/chi-alliance-boots-farmacia-ahumuda-20140506,0,1310685.story
Alliance Boots made an Offer for Groupo Casa Saba of Mexico
Farmacias Ahumada S.A., its stock listing on the Chilean stock exchange.
Farmacias Ahumada has over 1,400 stores across Mexico and Chile and is also the franchise licensee for GNC, a chain of health consumer products in Chile and Brazil.
It appears that Alliance Boots executives are not Waiting for Walgreens executives to get off the Toilet.
With 3/4 of a billion dollars added into Alliance boots debt,
I would expect a change in Walgreen management fairly soon.
Big.Yank are you watching your investment!!
GLTA!!!
Walgreens worksite solutions:
With what little information Walgreens has provided to its Investors or new shareholder the P/R released indicated it was 360 work site centers.
Does that include any in-store Clinics, I don't know..
It is possible, but I think they excluded many of the retail in-store Clinics, if not all.
Takecares/Walgreens former operations executive took a position in this new business that Steve Cosler from Water Street is running, and they have not released the sales price.
My question is did Walgreens release any of this sales revenue into Aprils sales results!!!!
It is interesting how Customer instore traffic keeps declining month over month... yet their customer purchases keep climbing.
Walgreens leaves out new store openings, so these customer numbers would not be added in.
With yesterdays announcement Walgreens customers will soon be shopping with tractor trailers in their parking lots..
Will Walgreen be announcing a inversion Soon???
GLTA!!
Walgreens sells takecare healthcenters;
Walgreens sold 360 Takecare health center locations to a private equity fund and also retained a minority interest.
Anyone care to estimate what this business unit from Walgreens was sold for and what % of ownership they retained.
I thinking below> 35%.in ownership
As to the selling price I thinking below> 370 million in cash.
please add-in your speculation.
GLA!!
StubbornSOB:
I guess Walgreens needs to define how they book same store sales, before I can respond to your statement.
A example is a Takecare worksite Clinic that records revenue for a OTC sold/dispensed product, or Rx, how about Drug-store.com or mail order is this revenue booked into same store sales, and under what arrangement?
How was/is inventory of OTC/Rx of products of the recently sold Takecare booked.. from this Sale..
Lots of questions around todays April sales release.
Now Walgreens mistakes in Business judgements are there, so can you blame anyone who has questions...
Could of also been released into other earnings.
As Walgreens retained a minor portion of the Takecare Assets, it may have held some money in a deferred account and released a portion of these funds into earnings, but we don't know..
"Customer traffic in comparable stores decreased 0.9 percent and basket size increased 3.0 percent".
Last Month, March, Walgreens customer traffic decreased by .4% so in April 2014 they saw another decrease of .5% in Customer traffic.
Must be Managements New formular for success, reducing customers selling assets and booking M&A synergies.
And in March Walgreens announced the Sale of its Takecare Workplace Clinics at a undisclosed price.
So where is the cash from this sale???
Lederhosen.. Walgreens Executives future!!!
And perhaps some hedge funds are banking on it..
Glta!!!
Good luck to You Mr.Yank!
At the time you bought Walgreens stock you made an Excellent move,
and gained on all the M&A synergy push, a lesson I have now learned.
However you are dealing with a naughty executive management, not to say others in this sector have not had similar executive problems.
The Independence of Walgreens BoD has not shown to be a effective risk management structure, in removing or overseeing what the day to day Executive Walgreens managers are not doing..
Internal Controls risks have cost shareholder $80 Plus millions, add in non compliance of EPA issues, also in whistle blower settlements..
And soon to be firings of dedicated employees who worked hard..
I do respect you, but this is about investing money, not about Executives you like, know or understand.
Stay in Touch,
Best Regards..