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Big.Yank are U hedging Walgreens?
As Mr.Yank has not commented on the recent Collar placed on Walgreens going over 73 a share or dropping below 60.00
I am ask him this Question.
Walgreens had recently purchased a position in Alliance Boots, yet there are several issues Walgreens needs to overcome in a Cross border M&A.
Big.Yank has a indebt understanding in this sector and is waiting for a stock split, or a possible tax inversion, that will cause a Breakout in Price.
I asked him what synergies would cause this and am still waiting for an answer..
GLTA!
Meijer is Cool:
I have never been to one, from what I've now seen they look like a Supermarket/Walmart type of store..
Operational expenses are distributed over several revenue streams
yet no one has unlocked the hold Chain drug stores have held in distribution, over time this may change.
The Central fill, does it also serve as a warehouse for all the 190 stores.. stock replenishment in on self Rx's??
I read this Center works on a hub and spoke model, is this there only Central fill?
As I and others have said Rx's are becoming a commodity and the costs need to come down, as Meijer is advertising some med's are free.
This is what Walgreens Co. is Facing moving forward as well as the local Independents who will include speciality offerings.
Do you Know who their Rx brand Wholesaler is?
GLTA!!
StubbornSob
I don't understand, automated Rx operations don't need tech's they have no legal responsibility, they one serve the trust of the pharmacist in charge, who's license is on the line.
The direction you are presenting has to many liability risks, I would rather get my script from a vending machine.
And this in is why Japan has moved into this space., as yank has reported.
Reporting of missfills of Rx is a self policing system in The US and this needs to be changed on a National level before any new programs move forward.
But don't count on this because then the CDS will no longer be able to control operational expenses.
1.5 Billion in operational oversite...that is a unneeded expense being put into Rx costs.
And I am sure Alliance Boots would agree.
StubbonSob
If I'm not mistaken the law requires the dispensing pharmacist/location accountable.
So when a script is transferred into a pharmacists controlled location/store this is the person who is responsible not the central fill pharmacist.
If this is not the case then dollar general could be a pick up point for PBM's or your local gas station.
I have not heard that a Rx could be picked up at the post office.. But it is allowed to be delivered directly to your home.
This has to do with pedigree and chain of command in risk management.
But big yank or wickedone are no longer engaging in this conversation., so that is my view.
Those central fill jobs could be out soon.
Why increase operational cost of transportation to a central fill loading unloading storage, ect, when that could be bolted on to a Warehouse operation and then shipped with its
Rx delivery destination at a lower cost.
But that would take some operational understanding in why you don't risk your supply chain.
My thinking is based on how during in a war you don't outsource your supply chain that could be purchased outright by a emeny like Walmart or
Target and disrupt/shut your Rx supply chain down.
As of today Walgreens does not have controlling interest in abc or even a seat on its board..
It might be a good investment in abc as Walgreens is not in a position to control warehousing..
GLTA..
Here comes the hedge fund Skimmers.
Walgreens traded above 70 today, no news has been released changing Walgreens outlook.
As RAD had a SP Run this morning, which I took profits and will buy in again.. you folks need to pay attention to the volatility.
and take some money off the table.
Unless you folks think Walgreens is going to break out of it 70 dollar high very soon, don't be the muppets Wall-street entertains as they pick the pockets of new investors... all reports are that the market is over valued.
This was posted at 1:30pm 5/1/2014
..
GLTA!!!
Lets hold 50 first.
I think this market is in for a correction and the holders of highly leverage stocks will be the losers..
C needs to realign its holdings for 2015.
And start to develop a position in financing growth industries that have a history in earnings.
GLTA!!
oilin:
You should be worried, but not about the selling price of GE.
This is the most undervalued stock in the market, don't be surprised if Warren Buffett announces a big position IMHO.
GE is moving out of its hedgehog posture and may soon announce another M%A..
GE is taking a position in the future of growth, based on a better infrastructure for Emerging markets, that someday will be the most sought after markets for the financiers.
Why MSNBC does not do a overview of GE is beyond me..
Control the Supply!!***
StubbonSOB, Unfortunately Walgreens management lost that control lever in the ABC contract, what they now control is the more costly end user retail sale.
Lets look at just 2 end supplier user costs.. ! 6000+ buildings with NNN leased contracts, salaries for 12,800+ Pharmacist's minimum, at 110,000K pr. year expense, these stores then pay net earnings into a non-disclosed estimated $1.5 billion Corp. operational expense.
This is so much more costly than the 26 Warehouses that ABC operates with staff, or how Alliance Boots operates, Alliance boots revenue is not solely dependent on its owned retail chemists...
Even in the UK Alliance distributes Rx's to non owned retail Chemists.
and this was a logical reason the financing firms providing cash for the Leveraged private buyout.
It has been speculated and reported that Mr. P was the lead negotiator in the ABC contract, ABC is the smallest Rx distributors of the 3 US wholesalers, Mr P is a expert in how Wholesale profit margins work and he received the best terms with ABC with a potential 15% ownership in ABC profits and I would think he did not want to lose Walgreens Distributor operations.
Walgreens Customer Growth has reported a decline over several quarters, yet a Wholesaler supplies any retailer, Wal-Mart included..
Alliance sent its former CEO to help Walgreens, and what did Walgreens send to Alliance ???
*** grab the high S/P and buy back in at the low..
GLTA!!
Yes, Walgreens currently is managing the Work place Pharmacies.
But these will be subjected in the future to Competitive bidding for Rx drugs, as price competition will drive the new owners bottom line in optimizing revenue.
As for being an experiment for a capitation model the sampling size is to small for any large roll out, and as Walgreens was more interested in the Rx supply then the data from the Worksite clinic I would not place much trust in this data, if they even have any.
What I did not mention In the Walgreens presentation, was the M&A projection for its Wholesale operation to grow revenue had changed..
As I have repeated in the past, ABC was not part of the M&A
driver for revenue, this was a needed fix for its failure in risk management..
I think Walgreens is stuck in a trading range even after the M&A is completed, Debt with BBB ratings, seem to be the focus before any A-B investments in expansion will be made, with QE coming off the straddle is looking better every day.
And I can only guess what issues they are facing driving that inversion decision..
GLTA!!
Prudent
Ge is a winner in my book, and made an excellent buy..
Be careful the US GDP number is scary.
Getting to the 3% US GDP number is not going to be easy with today's report.
Thanks Yank!
With today's GDP numbers I need it, and good luck to you also.
My GE should rise, my C not so sure about LNG same, and my bio techs
I'm stuck in..
RAD I should sell on the high, and then short this market.
GDP should grow next quarter.. But Europe is not preforming as expected..
How does your portfolio look 3 months out
GLTA!!
Oh,yes!! outlook raised.
Walgreens stated they will Allow Yank and Walgreens stockholders to proxy vote for the 2nd step for the Alliance Boots merger.
Also Walgreens will be hiring several more nurse Ratched's with H2B visas, reduce expenses and work in its stores, trim excess Corporate workers and any other area that can be optimized such as lowering Rx inventory with the ABC daily delivery model and freeing up Pharmacist time for more Flu shot like services..
Inversion is now being looked into/considered as Walgreens has always looked for ways to reduce US government Taxes.
And Several decisions will need to be executed.. before announcing this.
When questioned about the Sale of "Work place clinics"" answer was it is not really related to its operations.
And selling Cigarettes was part of the 2016 revenue calculations, so no they will not stop selling them.
As with all forward disclosures.. this maybe subject to Change, except the sale of cigarettes
So what has changed?
Walgreens quidance...
GLTA!!!
Well what do you think:
Walgreens held a conference call this morning.
So I ask you, what did you think??
Joel Parker Accounting Branch Chief of the SEC:
Sent Walgreens a letter that did not indicate they are closing its review of Walgreens accounting practices.
Sorry, I will not post it, as you all can do you own due diligence.
I am enjoying the speculation how PBM's Work,,, what is occurring in this sector or how PBM are evolving.. did you guys work for the clueless Walgreens? LOL..
http://walgreens.shoplocal.com/walgreens/default.aspx?action=entryflash&
Who is fighting off Target, Costco and Wal-Mart gaining market share.
GLTA!
PBMs gone ??
LOL, That worked out really well when Walgreens went up against 1 PBM.
Now, they are going to cut them all out, and the CMS who has been ripped off Billions of tax dollars is going to allow the retail pharmacy sector to police itself..
I forgot some folks are predicting Independent pharmacies will be Kaputt, cuput, dead..
It's more likely these chain Drug stores will issue guns to there pharmacists, and franchise there under preforming locations,
Downsize their Executive management and follow the global model of government controlled Rx pricing!! But Walgreens cant do this because they now longer control warehouse distribution. He..HE
Oh right, Alliance Boots does not do business with independents..
And you wonder why Walgreens can't hold the 70.00 price.
Geez, the more I look at the Straddle options placed last week the more I like it..
Gl.
B-Y Your getting closer to the London Request.
IMHO, Walgreens mangers have not shown earnings growth as compared to Mr. Pessia or the Alliance Boots folks, with China's deal.
A New Orleans Pro offense football couch would say to his team, if you are not the lead dog the view is always the same.
And that was told to Walgreens.Co at the London meeting IMPO.
As operational change always causes uncertainty, a sell off
in price most likely will occur.
And I was not the one who brought up the operational issue.
This operational leadership question was presented by 3 different sources
Joe Cahill
Adam Fein
Walgreens Hedge funds investors.
GLTA!!
Ok, I never said I disliked Alliance Boots.
The purchase price if I do recall was even questioned by you!!
But lets set that aside.
Walgreens was emphatic in their position on ESRX Rx price offering, and this was from this same management running Walgreens today, who if searched, made the most public remarks and operational plans presented on how they did not need this PBM.
Now Walgreens had to take advantage of this "closing opportunity"
In your post you state that "timing is everything" with low cost in Financing, a European recession, and a vision.
Well, Walgreens never announced it had a Global vision until the
A-B Merger was announced and ESRX was not providing revenue.
Only until a buyout of Alliance BOOTs was it discover that combining 2 large Rx buyers, there are Rx savings synergies..
So, it took Walgreens managers/BOD 2 years to discover this.???
I will leave Alliance Boots out of this, it was well known they where looking for a partner.
As I will repeat again, Walgreens blew a hole in its income statement with the Esrx impasse.
Walgreens had to patch this up, this hole needed a huge Buy-out and book revenue into earnings.
Gee, it didn't take Walgreens but a split second to announce they would be booking a 45% ownership of A-B into its Equity earnings.
And even the SEC questioned this...
Did Walgreens do the Wbad joint venture first...No they didn't, they marched right to the lenders(GS and ) who were stockholders & controlling Walgreens selling price, that was at 28.00.
This is where a structured M&A plan was developed and I would bet inversion was in one of the drafts.
Was Jana's on board then??? No, IMPO they looked at the M&A and though low to modest growth.
1 year later these Hedge funds woke-up(LOL) and discovered the global population was growing older..
And the only Company that would be a global Healthcare Winner was Walgreens..
If this is so, Why did the Hedge funds request more of Alliance Boots folks running Walgreens Merger with higher margins.
This is my view, if you chose to provide facts that differ, please provide them..
GLTA!!
Jana's Outlook.
StubbonSOB I have the same Question as you, why did they come in so Late.
According to the flyon the wall Jna's announced they see Walgreens by partnering with ABC, A-B as a value creation tool.
Yet the only Value reported is Synergies in the Buying group Purchasing, and the layoffs where overlap of jobs occurred.
Walgreens has not unlocked any new market of customers, in fact they have reported a decline in customers.
This is after over 250million being spent on last years drug store purchases, so where are these customers from buyouts. ????
All I can think of is that the Merger assumtions are not hitting projected growth plans, yet the financial numbers are on track.
Making the financial numbers are not that difficult when you look at the cost savings that are limited/fixed in the first few years of a M&A, example , Insurance, financing/borrowing costs, reduction in labor spending.
However, the Debt undertaking by the merger calculated growth, with margin increases, is how the Investment bankers/bond market sellering works
Lend us money at X% of interest and we will pay you back based on the M&A metrics and also buy this stock for the upside that the M&A will create.
This IMPO is why the hedge funds moved into Walgreens.
The key driver for them is the volatility of a selling price movement. which a $ movement up or down can put money into there banking account.
What they are engaged in is hedging and they will be the first ones to move a corporation price and then sell, or buy.. the information they have on the M&A which we don't, is the Mergers area's of growth that were projected.
big-Yank will disagree because he will not hold a Corporations management accountable for the outcome in a M&A.
It has been 1 1/2 years since the A-B merger and margins or customer increase in traffic has not occurred..
Yep, more Revenue, but the margins have only moved down.
GLTA!!
StubbonSOB and Big-Yank:
I believe this market is overvalued and this sector for Medical products, Retail Chain Pharmacy, and Drug manufactures S/P Is way out of line with projected global economic development.
Where do these bankers think this in-debt money will come from?
Synergies???
This is a "Play" created by the Banksters and Investment bankers, who calculated the global ageing issues and is bidding this sector up to the sky, based on what??? there own enrichment!.
So don't be shocked when this sector deflates.
People get old and they die, and bidding a drug manufacture takeover, Pfizer offering $100 billion for AstraZeneca is over the top in rational thinking.
Just like face book or twtr valuations, there are Investment Banking teams who will justify these prices and find people to invest.. Just like the pet Rock.
Rad is selling under 7.00 vs Walgreens 67.00 or CVS 73.00
Rad made many costly mistakes in M&A's misjudging the market, and I think we are seeing this repeated in Wag and CVS M&A direction and selling price.
Just think if you fell out of the 73 floor or 67 floor of a building who would survive, most likely the person who fell out on the 7th floor.
These 2 stocks CVS and Wag are the Investment/trader bankers Skimming tool(Volatility), so unless you buy and sell on a daily basis you will be left holding these deflated bags.
B-Y what was Walgreens selling for in 1999?
And what has changed?
Last Question have the margins expanded?
GLTA!!!
Wag and CVS are sells'
Rad is a buy in this market rotation to the down side
Fox Rx v CVS
Walgreens settled with the DEA, However, that does not let them of the hook from litigation either..
Fox Rx v CVS.
http://www.courthousenews.com/2014/04/04/66785.htm
So with fox's experience in Prescription payment lawsuits, should they win against CVS, I would expect Walgreens will be next.
http://webcache.googleusercontent.com/search?q=cache:lQZzBfNLIHYJ:www.sidley.com/files/upload/Fox%2520Rx%2520v%2520Omnicare.pdf+&cd=1&hl=en&ct=clnk&gl=us
As for CVS or Walgreens Wholesale contracts CAH-ABC with revenue added into Walgreens earning, CVS has side stepped this issue.
Walgreens has been using on hand Cash to purchase ABC stock, and is reducing its cash flow and assets as I said.. also Walgreens has transferred its shareholders Assets into its revenue.
Making Walgreens earnings look better.. by this management.
Should ABC stumble, or run into a downturn in ABC selling price..
Well you know the outcome..
Again Risk management is not Walgreens strong point..
And it seems CNBC is stuck on the inversion issue and not on earnings issues or Corporate governance loosers.
GLTA!!!
Lock em up!!
http://blog.al.com/spotnews/2014/04/whistleblower_monroeville_nurs.html
But of course they are allowed to infect our society.
StubbornSOB:
As a Investor, I hold a Corporations leadership to a standard beyond its reported earnings.
I have looked/Invested and worked in/for some Corporations who's Senior Management/BoD were worthless, after the founders retired, and today these Corp. are in the graveyard or are not trusted by the Market;0)
This media(Internet) we use, changed the balance of power.
You, Yank, I and others can exchange information on Corporations or Politics, the past power of media dollars spent trying to disrupt facts are less effective, but we.. can exchange Findings and information should we choose.
We are Main Street!!!, and unless you own a Banking charter, a holding above 5% or have access to the Fed window, we will never be able to hold a private meeting with 3 Corporate executives all in attendance.
I have no dislike for Wag, CVS or any other Corporation.
Thanks for the work in your finding.
Good luck!!
Post the Link!!
I missed it, and I am no friend of any greedy Soul-Less
Corporation that put Profits before the public's welfare.
I put a link up here on CVS and its POS executive who cooked CVS Books and then Larry Merlo/CVS and its BoD keeping this turd..
Walgreens brand is loosing its value under this current leadership, with private investor meetings, who are they kidding.
Walgreens Leadership iMPO is now going down the path of Howard Johnsons.
Waiting for your reply.
"Dereliction of Duty"
Is the DEA web site Slanderous to Walgreens.
"The settlement, the largest in DEA history, resolves allegations that the Registrants committed an unprecedented number of record-keeping and dispensing violations under the Act. """According to documents filed in the underlying administrative actions, the Registrants negligently allowed controlled substances listed in Schedules II – V of the Act, such as oxycodone and other prescription pain killers, to be diverted for abuse and illegal black market sales""". This was in the DEA agreement... Walgreen CEO and BOD agreed to pay $80 million dollals of Investors money for this to go away....
And now the Sec is ask Walgreens Co. CFO on how he/they are consolidating Earnings from the Wbad Jv..
http://www.sec.gov/Archives/edgar/data/104207/000010420714000019/filename1.htm
Please, we are not dealing with a white Rose here.
A Walgreens split:
Yep, I'm sure Walgreens Co. would love to split/run away from being held accountable for its dereliction of duty to its investors and the public it serves., as for this Co. stock splitting that would be up to Walgreens unaccountable BOD.
Walgreens shareholders surly are invigorated so much so, they held Court in a private "Hedge" fund meeting(LOL), leaving out the remaining 51% of stock holders.
Just look at the reported facts by the Financial Times, Walgreens CFO, CEO and a member of Walgreens BoD were in attendance.
And no public release of this meetings agenda or its discussions has surfaced.
And this is good Corporate governance??
So IMPO the next split is about who will, and how to, split/carve up a unaccountable management structure.. before the Alliance Boots final buyout payment is due.
GlTA!!
Enron was not introduced as a comparison
The point is that Wbad can move Rx pills around to A-B, Walgreens Or ABC an use this as a hedge for current pricing, if a Rx price drops or increases.
Walgreens has Long term Rx contacts for pill pricing .
But who records this an asset or inventory is the question.
Don't look at me for bring up this issue it's the Sec that requested Walgreens to put in writing how they are recording revenue.
Walgreens is contracted to buy A-B, and is recording The majority of ABC warrents and stock price increases
So they are the one the Sec is questioning.
And CVS did not Know what the Caremarks Pbm was worth or how value able it is until recently.
GLTA!
Enron was not introduced as a comparison
The point is that Wbad can move Rx pills around to A-B, Walgreens Or ABC an use this as a hedge for current pricing, if a Rx price drops or increases.
Walgreens has Long term Rx contacts for pill pricing .
But who records this an asset or inventory is the question.
Don't look at me for bring up this issue it's the Sec that requested Walgreens to put in writing how they are recording revenue.
Walgreens is contracted to buy A-B, and is recording The majority of ABC warrents and stock price increase
So they are the one the Sec is questioning.
And CVS did not Know what the Caremarks Pbm was worth or how value able it is until recently.
GLTA!
Good afternoon.
The short answer is the Sec is questioning Walgreens CFO accounting for new revenue/earnings consolidated into Walgreen financial statement.
This method does not disclose any debt/liabilities that A-B brings into Wbad partnership, so revenue is recorded and debt is not, just think about Enrons accounting magic.
Enron was setting up off balance sheet debt, like death star, and in doing so the financials of Enron looked great.
Death Star was capitalized with Enron stock. And Wbad is capitialized with abc stock so liabilities/debt is held off of wags holdings 45% in A-B reported addition of revenue into Walgreen earnings.
This debt/liability exists but it is opaque.
So it come down to the Sec not likeing the way Wade is accounting for revenue to Investors, which is reflective of the Wassins A-B purchase that was and will not be presented to Walgreens shareholders for approval.
If you recall this is the CFO who had 2 run ins with law enforcement, and manages risk through law firms.
Sell high and buy low..
And the beta coefficient on Walgreens risk has changed .
GLTA!!!
Sec questions Walgreens Accounting!
of Alliance boots earning into Walgreens consolidated financial statement.
http://www.sec.gov/Archives/edgar/data/104207/000010420714000019/0000104207-14-000019-index.htm
Walgreens response... Alliance Boots is a VIE
Investopedia explains 'Variable Interest Entity - VIE'
VIEs are commonly used within financial firms for their subprime mortgage-backed securities. They can be a special-purpose vehicle (SPV) that allows firms to keep assets off of their balance sheets. A VIE refers to the way a firm's exposure to the SPV can change. This is the key to whether or not it can be excluded from the balance sheet.
A corporation can use such a vehicle to finance an investment without putting the entire firm at risk. The problem, as with SPVs in the past, is that they have become a method of hiding things (such as subprime exposure), or as in Enron case debt..
It was also reported a insider sold off over 60,000 shares in April, and yesterday a large options collar trade was purchased.
So, the Hedge funds that held a private meeting in London didn't know a thing about the SEC letter and only talked about inversion.
LOL
Yep, there must be more to the London meeting than us main street investors know..
GLTA!
Don't Blame Us!
This whole mess can be laid at Walgreens CEO's and his executive muppets front door.
Don't you now see it big.yank, all those tax dollars that Walgreens paid to the US government, will now go to the Swiss non 24 hr. defense budget .
This US loss of Walgreens tax revenue will blow a hole in the US defense budget which will embolden the Russian's to Nuke all Walgreens stores in the US even the ones in Florida
Russia's strategic plan(W/Snowdens help) has plans to Nationalize the Alliance Boots franchise in Russia.. generating Mega revenues for the Russian states... which they then transfer this income back into Wbad Switzerland's currency and then exchange this into pounds sterling infiltrating the worlds currency with the Russian currency..
So now you can you understand why I post about responsible risk management..
KUAGB(Kiss Ur @ss Good by)
LOL..
Florida baby , yank and I are safe.
Who would attack a bunch of old folks.
Now if you live anywhere else except Alaska I'd worry..
Increased Risks or Savings?
This is a risk arbitrage bet.
http://www.nytimes.com/2014/02/15/world/asia/medicines-made-in-india-set-off-safety-worries.html?_r=0
Beside being a FDA ongoing concern this applies to Wholesaler purchasers not just with the finished Rx product but also with the API chain of suppliers.
IMPO this is not rocket science but looking at the Volatility
of late with a private London meeting, bringing in the rocket scientists might be a good thing valuing risk. on Walgreens selling price..
Also low payments for prescription Drugs!!
Remember this is about increasing margins for Debt repayment..
Or is that not an issue going against the other providers in this sector.
Call the Ball "Top Gun"
http://finance.yahoo.com/news/walgreen-faces-big-downside-play-094718379.html
In the above post is in the spirit of accurate information.
Someone Knows a bucket is on the Burner in Deerfield!!
StubbornSOB
If you don't mind me asking where do you think Walgreens /A-B synergies will come from beside the savings from bulk purchasing
on Generic drugs.
Wassin talks about best practices, yet his Well experiment in pharmacists being out of the pharmacies prep area.. creates more risk in misfills, miscounts, possible interactions, expired meds etc. than value creation in selling a hemorrhoid cream to a muppet patient.
I have yet to see another chain follow Waysins direction as I believe and any risk manager would say a chef should be in the kitchen not on the floor selling coco puffs.
MTM is an area that is ripe for fraud also, as we will find out, misrepresentation of a patient consultation by a voice on the phone representing to be a pharmacist with no follow up documentation other than a signed paper requesting payment.
The Chain Drug store industry executives know this and will not act until someone is caught..
Then they will offer a solution with a settlement to CMS while knowing this could be done Now.
As I view Walgreens selling price it is based on forward projections with-out the global risk factors Walgreens has undertaken with no experience in these foreign markets, This is what the hedge funds are betting on.. ****Enter stage right**** risk arbitrage trading for proprietary accounts.
GLTA!!
Animosity towards G-S:
No.. I just listen to views of G-S as an enabler by a insider, or 2 perhaps 3 or more..
As you and I are using verifiable sources, here is my link by a former insider
Rotation of Debt, leverage, and Dinosaurs Hunting:
Yank, you now have identified the Paleontology life cycle in the Corporations that Hedge funds Hunt.
As Walgreens Co. choose overseas expansion as its different growth direction to increase earning, Billions of Investor Dollars are now riding on this executive groups decision without owner-shareholder approval.
Walgreens Co. has no experience in foreign markets that distribute prescription medications, and as Walgreens numerous issues meeting US government guidelines shows for the 1 country they are doing business in, this clearly shows why Janus among others large stock holders are seeking a larger return in invested capital(ROI) from Walgreens.
The large the risk.. the greater the return.. The standard for Investing or gambling.
In your SHLD example where is the Failure, IMHO it is the failure of a Vision, engagement and creation of Value to the population it services.
Does the corner of Happy and Healthy meet this market of consumers needs> who spent/spend billions on healthcare services?
Did the PBM meet this??.... and will the next innovative supplier meet the consumers need and capture market share?
An example is ITunes.. how many industries did this one innovative product disrupt.
Corky Walgreens understood this concept when he sold off Wags restaurant business, and lowered the pricing on prescription drugs. unfortunately this new breed running Walgreens requires little to no shareholders input on its course direction.
Why else would a large Hedge Investment fund go public with its view on where Walgreens needs to be financially in returning capital at risk.
A much overlooked US debate is now going on about the efficacy of generic medications not meeting FDA approval standards.
Walgreens promotes its dominance in generic distribution, questions may soon arise as how the world largest purchaser for retail prescriptions will avoid a (Raxbury) generic Lipitor type RISK problem.... lowering Rx purchasing costs and returning invested capital to its shareholders when it does not control the manufacturing of these products.
M&A's are the paleontologist hunting grounds, and Janas appearance on CNBC showed us he among others are locked and loaded.
GLTA!!
.
Yank your post is like a Walgreens Press Release.
As I understood the KKR involvement with Unichem in the Boots buyout and going private, KKR had a 5 year agreement with Mr. Pessina to be repaid in cash and stock with this new Corporation "Alliance Boots" going public.
A M&A was not off the table either but cash was Requested in any M&A.
If you read the ABC agreement with Walgreens KKR has many funds with Alliance Boots as a holding.
And the Facts are that KKR took a very large Percentage of Walgreens money in the first step of the M&A, they also have a KKR partner on Walgreens Board, unless you think Dominic is some empty suit, which I can assure you he is not..
As for Goldmans Sachs involvement, you want me to think Walgreens was just wandering around the Global looking for synergies..
And Stefano was the door greeter at boots when Walgreens executives walked into Boots(London), as I understand it Mr. Pessina met with several US CEO's in the Pharma sector and Wassin was on the D list.
And during Walgreens England visit Mr. Pessina did not meet with Walgreens executives until the Wedding planner(GS) called.
And the information I saw was that GS was the main book runner representing Walgreens in the M&A,
"The finance guys were in the dark for most of the 2 year courtship process".
So these investment bankers are clueless...LOL more like Walgreens was clueless as to valuing the deal and what synergies needed to be achieved.
Do you really think Wassin and team came up with the 1 Billion in Savings from Rx purchases..??
The question Jana's layed out on the CNBC table was where is the synergistic Growth coming from after 1+ year..
As for Wassins team Folly in Mega Flagship stores why no announcement on it revenue /profit margin traffic increases