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JGulley317
My outlook, less financial engineering and more focus on Creation of Products, services and solutions.
Focus on The basics of how GE became a leader in Industry.
The market makers are placing more value on Dutch Tulip bulbs farmers than on value creators, and we know how that turned out.. don't we.
I wonder if GE has a American made hat for its shareholder...
GLTA!!!
I'm holding Here.
I sold at 50.00 and bought back in at 46+ because C has the foot print to regain its market share ..
GLTA!!!
Ok, no more Rants let talk pricing;
So, lets model Walgreens forward sales pricing based on Facts and projections of Synergies, that are available on the net and the Sec web site..
Can we do that?
Glta!!!
Is Walgreens a Healthcare provider or a Convenience Store?
Mcd's KFC, Yumi does not promoted the idea of providing the best in Healthy choices, unlike you Know who... so the Vision being offered is clouded in smoke.
Billions was put up by the Investment Bankers for this merger,
and this money has a vested interest in making its money back with profits, at any cost.. Is the GM investigation just a shake down??
The libor scandal, The banking Crisis, I could go on, but the facts are there.
And, yes Investment bankers has done some excellent things also while making money and taking on Risk.
Its just easier for them to game the system when thing go off track with a fortune 100 company, these Investment bankers are giving access to money and have a Casino out in front of there shop with a flashing invitation for the public to join in..
Because if its investment planning fails, the IB's are the first to sell(stocks) and take control of the underlining Corporation assets, financed with the common stockholder money in a BK or reorg..
Or dump there stocks and leave a empty bag.
As I believe we both know!!!!
Just as $$$ synergies for a proposed merger is giving to the investment underwriters, a selling price for this stock is also modeled for the Casino.
What this forward Selling price is, Perhaps you know.. I don't.
Have you modeled Walgreens common stock price???
Is it $90.00
$76.00
or less.
Well the facts are there, "The world population is getting older".
And that is a Huge Maquee, with a colossal tent.
And the cost models extracting profits are being estimated.
The question remains who will medical patients choose to go to when they need a healthcare service or will the payor Decide that???
Should the payers decide to lower payments to the folks down on the smoke filled corner or offer a higher payment to the folks that provide a quantifiable health outcome with out all the smoke has yet to play out..
But the history of a Management past decisions is a indicator when money is on the table..
And I am sure you have read liars poker and played it..
GLTA!!!
Capitalism 2014 sure has Changed
In response to you first comment, Smoking causes Lung Cancer, Heart Disease, Emphysema and may complicate Pregnancy..
And the Captains in the Tabacco Industry knew this and spent billions $$$$ lying about these finding, all in the goal of becoming the biggest apes with the biggest jets living the Hollyweird lifestyle.
And no one was held accountable or went to jail!!!!
So, Walgreens thinks this is a product they should supply to their paying guests!!! Is reefer next?!!
Management's scorecard is measured only by share price performance, and less material on how they get there???
Therefore a Corporations managements business decisions have no shaping effect on the society, culture, ethics, or living Conditions of the population?
These decisions do effect a Corporations Survivability. cost of business, and achieving a directional Vision.
What is Walgreens flavor of the month? Oh, yea global dominance in the corner of Happy and Healthy.
These government rules you see as so confusing, have been put in place to protect the governed, by those who are educated in the safety of handling, use, abuse, and disposal of these products.
Public corporations have a legal duty to abide by the rules no less than you or I, and if Managements have a problem with that they need to go.. or is GM's recent hearings another shake down.
Do these rules get easier in other counties, I don't think so..
But the shake downs get bigger.
big.yank you avoided addressing any of the issues I brought up but
hey your share price is up!!
Nice rant too..
GLTA!!
A foot note;
How you guarantee managements Employement, just pay 4.025 billion + 83,392,670 share..
This is from Walgreens 8K disclosure on AB M&A.
" for so long as the SP Investors have the right to designate the SP Investor Designee (or Mr. Pessina continues to serve as Executive Chairperson or Chief Executive Officer of Alliance Boots) and for so long as the KKR Investors have the right to designate the KKR Investor Designee, respectively, vote all of their shares of Common Stock in accordance with the Company Board’s recommendation on matters submitted to a vote of the Company’s shareholders (including with respect to the election of directors). In addition, the Company Shareholders Agreement contains a lock-up provision that restricts the Investors’ ability to transfer their shares of Common Stock for certain periods" .
History + Management>>> Outcomes;
Prudent, not understanding a Corporations History can be a costly
mistake to an Investor.
A little background on the 5 years old Itrax and Whole Heath Management purchase price = 380+million, 297 million for Itrax.. WHM was unreported so I'm just guessing on this,
It will be interesting what they sold this for, Imo this sale was done for the purchase of Alliance Boots.
Seeing as B/Y stated he believed all the financing was arranged in the A/B M&A beforehand, I am wondering if the London meeting was about the selling of assets to close the AB offering.
And the reNegotiating terms in lender financing when assets are continuously being sold off, closed or set up in 50/50 Joint ventures.
As we never did read what this London Investment Bankers meeting was about.. and you have to love the selling price.
Shareholder approval for the Alliance Boots M&A was never voted on,
The closing down of Walgreens Pharmacy Warehouses a core element of Walgreens business had no shareholder input,
A minority equity investment in a Rx Wholesaler that Walgreens does not control, so I'm sure the share holders appointed BOD's of Walgreens Co. is not concerned if its chosen management keeps missing earnings, reduces customer counts, and Buys a company overseas that it cannot understand how all the working parts of foreign operations fit together.
The tailwinds in the Rx sector looks good all agree...not enough to have a rating agency unable to lift Wags bond rating, however.
Walgreens is selling on-site healthcenters for stock option cash-ins from overpaid executives & its Bod's, then running a Company who's US Gov't run-ins are well documented and costly, What ever could happen overseas??
Well GLTA!!
Walgreens Steps backwards.
Sorry Prudent, It too late to edit my last post, so I will repost it without the talented Michael Jackson.
Walgreens Moon walk:
http://finance.yahoo.com/news/walgreens-water-street-announce-agreement-170100410.html
Walgreens takes a minority interest in this new company and the financial payments to Walgreens were not disclosed.
Expect to see a boast to the Sales/Earning statement, as Take care never was Walgreens Son ..
Moon Walk Video deleted: Happy
Big.yank or Prudent what do you think about this cash raising event were Water street buys out this business asset.
Walgreens Executives who are in control??? are still selling/unloading divisions they failed at , What's the count so far..
Walgreens Moon walk:
http://finance.yahoo.com/news/walgreens-water-street-announce-agreement-170100410.html
Walgreens takes a minority interest in this new company and the financial payments to Walgreens were not disclosed.
Expect to see a boast to the Sales/Earning statement, as Take care never was Walgreens Son ..
GE the best buy in the market!!!
Load up, this is the best of all stocks in the market!!!
Unlike Bill Ackman I admit when I'm wrong.
Yep, totally wrong today and wrong for selling at 31.+
L.O.L at Myself, but, I do not hold a Short position in Walgreens either.Looks like a price deflation afterhours, but I was wrong!!hehe
GLTA!
Boots saved Walgreens 2Q earnings.
I would think you read the article, and earning was way below estimates if Alliance BOOTs did not step in.
Alliance Boots manufacturing Div. it has been reported is experiencing some Headwinds with product recalls.
This may show up in the next Q.
As for the Wbad buying synergies and the ABC Distribution agreement,
I am starting to understand where the revenue savings are coming from and I'm guessing for now its the OTC medicine products.
However Walgreens accounts payable was up in the 2Q, and cash flow was down, also inventory value was up, not being an accountant, I am thinking less turn over and weaking sales on the front end and M&A Rx file buys contributing on the Rx side
As for the Store Closures and the reported 250 million in cost's as I tried to explain NNN leases to B/y the savings are on the tax side of the ledger.
And the deductions allowed for the new store commitments with openings is where this 40-50 million gain is coming from.
If I am wrong please correct me, as I said I'm not an accountant.!!
Alliance Boots is the best thing that happened to Walgreens,
If you read the Adam Fein's article Walgreens and the future of moving to Switzerland, he made some very astute comments as to Walgreens direction..
Adam also did a April fool piece, as he is a much better writter and smarter person than myself I did like my April fools post anyway..
The Tailwinds of the Aging population estimates, and calculations are factors, but these baby boomers are not using as many medications as projected.
Obama-care will add to the growth of the population on Drugs.lol
GLTA!!
Not the yearly Low!!
I meant the low for the day vs yesterday, which did occur this morning and may occur again after hours but right now it looks unlikely.
Would you like to talk about the headwinds or tailwinds Walgreens is facing in the 3q.
Or is this bashing..
I view it as discussing a stocks selling price and how the market seem to know in advance what the numbers will be before the earning report.
GLTA!
Well my Friend I disagree!!
Take a look at this article:
http://www.reuters.com/article/2014/04/02/energyfuture-restructuring-privateequity-idUSL4N0MU16820140402
KKR and Goldman Sacks do own positions in Walgreens stocks, bonds notes and debt instrument, so this is relevant as the needs for cash liquidity and lending investment keeps them in business..
This line in the article includes this wording
"full legal releases" to KKR, TPG and Goldman Sachs,
meaning agreeing to/after B/K restructing leaves the common shareholder left with nothing, these Bankers can receive a equity stake in the new corporation which they Do...
Your view?
And my guess today is Walgreens will see a new low today before closing!!
Big.Yank would U like to discuss why the Casino never loses.
We could discuss the Healthcare service sector, companies like Walgreens, RAD, CVS or Rohiq that provide homecare medical supplies and services, and how in a B/K the investment Bankers walk away with cash and a new Corporate structure while me an you are left with a piece of worthless paper, and a tax deduction.
This Investment boards investors have to be the most disengaged folks on the internet!!!
And don't say it was my postings that drove Milo and WickedOne away, we use to engage in some lively discussions.
GLTA!
Illinois approves In-pharmacy Surgery:
Walgreens Pharmacy announced today in partnership with the Illinois board of Professional Relations they have been approved for the first in Store Surgical Theater.
US Healthcare costs are projected to increase to 19.5% by the end of 2015 and the state of Illinois has taken the lead in controlling costs along with Walgreens corporate planning managers.
The Hoosier State approved a program that allows surgery patients to reduce the cost of a surgical operation by offering in store viewing to a surgery operation.
Tickets are being priced according to the Medical team staring in this show and the risk factors of the operation...
The Breast implant operation as viewed by the approval committee at the Walgreens In-store operations theater, saw a doubling in the number of ticket purchases by customers within minutes.
The Illinois Regulation and licensing boards vote for In-store Surgery was recorded at 6-0 for approval.
Cold Beer and soda was for sale to ticket holders during the show!!!
April fools..
LOL...
Micro Data, Macro Data Algorithms
I will use Walgreens S/P as a example later in my observations.
I agree on these Black hole Boxes also using media sweeps of information as you listed.
But in its core function, it is using mathematical models based on accepted formulas in financial modeling.
I believe LTCM was the 1st Black box child in this valuation method using high Speed trading by modeling future events that could happen on the upside or downside.
Something like Government re pricing of Rx's can be modeled, high low with a weighted average yielding a stock price range.
And this is were the Black boxes have the computation advantage over us daily in pricing movement.
The larger Macro issues, Interest Rates, defaults, BK, libor, etc. are less predictable as to how this will affect each industries selling price, but again the inflation rate as well as global financial information can be modeled with a less degree of Certainty.
The Area of investigation of Civic social outcome by the black box for a company with a unknown outcome holds the least degree of certainty in a selling price, because the reaction to hundreds of inputs evolving in a non-liner flight creates a new un quantifiable outcome.
The trajectory can be estimated and modeled for a selling price but the boxes are unable to assign a weight risk factor by civic/social responses. as in the Esrx.. value=retain rate/ time.
another example is the Skittles case Fl. , Teenagers trashing a Walgreens store in Fl..
That latter would be a micro event affecting earnings, but when a black swan event occurs like the Illinois investigation its development can trigger a much larger reaction with a fluid and changing resolution or price modeling a unknown outcome, Like the A-bomb controversy or the first black swan sighting.
I believe the black boxes are unable to price within a margin of safety in a companies selling price and there fore liquidity in Volume slows and pricing swings increase as events unfold.
Or volume liquidity will increase and the S/P will have larger swings.
I looked at the buys and sells Walgreens experienced the last 2 days pre, during and after hours and have observed increasing volume single trades, as well as pricing...
I am suggesting this can be an exploit in the limitations with the black boxes not being able to calculate/understanding social/civic issues in a Companies selling price with forward valuations until the outcome is determined.
GLTA!
Big-Yank Analyzing the High Speed traders.
Have you looked at Walgreens trading since yesterday with the news release posted.
I think there is a exploit here as these programs are not set, equipped to analyses or have a formulary for valuing S/P for legal issues a Corporation is facing.
Have you looked into this ? ?
I'm thinking that the Black boxes are then guided in trading volume with pricing under the Human element being in control..
Until the legal eagles look at possible outcomes with cost ranges and then programed into the risk factor of a S/P range.
Illinois is the home Rod Blagojevich, a state with the sunshine law.
GLTA!!
Anyone buying More on the Pull Back?
Walgreens ethics/legal problems maybe bigger than first reported
yesterday.
USA ran an article several years back about chain drug stores self enriching control and interests on the States boards of Pharmacies.
Also, reported yesterday was several requests for the IG of Indiana to review its Pharmacy Boards actions in approval of a "on the floor pharmacist" , citing laws and safety procedures that were broken for several years.
Politics can get ugly for a Corporation and its agents who are suspects in undue enrichment in a HHS investigation..
GLTA!!
Oops, I did it again!
http://www.pal-item.com/article/20140331/UPDATES/140331008/State-pharmacy-board-s-actions-raise-questions-about-ethics-patient-privacy-safety
Well, at least we A few of us Know how to be amused at a $100 million dollar production that backfired ..
Choo...Choo.. Last call for the Obama Express.
Well perhaps not.., it is being reported, signing up for the ACA at Healthcare.gov last day, has experienced a 4hr Glitch ..
Corporations such as Walgreens having exposure to the ACA will have a upside in healthcare will experience a lift today in pricing..Cnbc reported.
Should you be interested in the black boxes of high speed stock trading, 60 min. reported on this issue last night.
http://www.cbsnews.com/news/is-the-us-stock-market-rigged/
Big yank and me have had a on going discussion about Main St. vs Wall-streets Casino, who wins and who loses, so judge for yourself after watching this video.
As for big yanks swath of knowledge in understand the stock markets direction in following the money I could not agree more.
However, do understand the road sign's as you are flying down the road in valuing a stocks wild trading price..
I look at thousands of choices in the Capital markets offerings, with the same or similar products and service.
As I believe the keys to success, is not always having the best offering with the lowest cost, Walmart had turned this idea on its head.
I did ride once on the San Francisco street car and only could read about the demise of this service for the public in the other major cities.
Perhaps those Corporation managers just desired a forward vision.
Turn the sound up on this video and enjoy.
That directional information is worth a lot of money!
So, I will pass on a answer
As for who the BOD should have brought in,
How about someone who had a wholesale distribution back ground with Pharmacy Drugs, services and a medical products understanding..
They distributed these to CDS's, CVS, WAG, RAD, etc. as well as independents pharmacies and survived payment cuts.
And now, Walgreens requires a ABC type agreement, as a investment return for its shareholders.
Walgreens management is all about advertising convenience, marketing and storybook imagery,, as noted by several papers with Wassins avoidance on the cigarette Healthcare question, Flying Pharmacists and Hollyweird grand openings.
Hell!!!, Do you think I care or your Family and Friends if Walgreens is selling the Obama chia pet when we go into this store??
Or a not needed, on-seen on TV piece of Junk!
No, the reason I go to a drug store is for a 6 pack of big flats beer a pack of lucky strikes and a shoe shine.LOL
My current alternatives for medications and what I pay are expanding as we know.
Look up!!! was that a Drug store drone that just landed in my neighbors yard..
Yep, it said Jet blues express scripts, a complimentary delivery service from your local ready meds kiosk team.
Innovation is not about 90 day Rx fills on maintenance medications, it is about being relevant to your customer as Walgreens founder was with his delivery service in his time.
Or as Boots the Chemist was with his medications.
This is not seen in many industries that have followed entrenched idea's in how to grow revenue and are now are in the bone yards.
Wal-Mart sure caught up quickly to the big boys didn't they
and customer growth w price competition was the weapon.
The next business models will use something different, perhaps a treat, but pricing competition will always be there in a Capitalistic system.
Just as in the stock pricing of Walgreens vs CVS or RAD or Wmt.
The stock market is a Casino and the house happily feeds you the free drinks and with entertainment(WSF, forbes, Crains, etc.) while they are taking your money.
Congratulations on your win folks.
GLTAL!!
That information is worth a lot of money!
As for who they should have brought in,
How about someone who had a wholesale distribution back ground in
Pharmacy Drugs, services and products..
They sold to these CDS's, CVS, WAG, RAD, etc. as well as independents pharmacies.
And now Walgreens needs ABC as a investment for its stockholders revenue returns.
Walgreens management is all about the convenience advertising marketing model, as noted by several papers with Wassins avoidance on the cigarette Healthcare question.
Hell, Do you think I care or your Family and friends if Walgreens is selling the Obama chia pet when we go into this store??
Or a on-seen on TV piece of Junk!
No, the reason I go to a drug store is for a 6 pack of big flats beer a pack of lucky strikes and a shoe shine.LOL
My current alternatives for medications and what I pay are expanding as we know.
Look up!!! was that a Drug store drone that just landed in my neighbors yard..
Yep, it said Jet blues express scripts, a complimentary delivery service from your local ready meds kiosk team.
Innovation is not about 90 day Rx fills on maintenance medications, it is about being relevant to your customer as Walgreens founder was with his delivery service in his time.
Or as Boots the Chemist was with his medications.
This cannot be seen in many industries that have followed entrenched idea's in how to grow revenue and are in the bone yards.
Wal-Mart sure caught up quickly to the big boys didn't they
and customer growth w price competition was the weapon.
The next model will use something different, but pricing competition will always be there in a Capitalistic system.
Just as in the stock pricing of Walgreens vs CVS or RAD or Wmt.
The stock market is a Casino and the house feed you the free drinks while they are taking back your money.
GLTAL!!
Fat Cat:
Do you know the survival rate of these babies, or the expense both in emotional and dollar costs.
A banker understands risk, look this risk up!!!
This product with the right work ethics will make money, but the time value for the dollars spent are decreasing very fast..
and thanks for you view.
GLTA!!
What Vision??
Expanding Real estate store counts is not Reins or Wassins vision, this has occurred since this company was founded.
As for DSCM/Walgreens.com or any of their other web sites, I don't know anyone who ever used a Drug stores web site to purchase convenience items online and I also Question if any of these units are making any money after expenses.
Also Wassin or Rein are not online innovators, geez, even Piggly Wiggly has a web presence.
I have not heard any reports on this divisions revenue growth since it was purchased.
Rph consultation services, these have been around as long as pharmacies have sold herbs/ controlled medications, unless you go to a grab and go take-out CDS pharmacy who have insulated themself's from taking any responsibility in patient or medication safety.
They now are adding an instore "limited nursing service" expense, with the out-in front pharmacists, and whoever that is in the back filling Rx's, being supervised from an I pad.
Then these highly paid young professionals are engaged ring up this sale with the on Sale Snow Shovel!, This is a vision??? Ha.Ha
I read the FDA is checking on this one.
As for the fresh food Desert concept, CDS Yogurt sales increased, as reported in Supermarket News for Chain Drug stores, along with Drug store signs asking to check the expiration dates on products..
I did like the DR buy, Vaccination services and the Red box.
As for the Alliance Boots purchase, let see, they are primarily a European Drug "WHOLESALER", with manufacturing...and Chemists shops, that is "NOT" a closed Rx wholesaling distribution system.
So, the AB and ABC innovative deal comes down to, Walgreens senior management after 100 years with Walgreens manufacturing background did not know how to run or innovate a Rx Wholesale supply chain.
Geez, get me some eye glasses...my vision is impaired.
Alliance Boots is a private Corporation, who's Wholesale division is leading its enterprise, You may disagree that this is a similar type of Wholesaling unit Walgreens operated, that the Wassin innovators are currently dismantling.
So my answer is no... Walgreens should not have stayed the course.
They should have brought in Leaders in Management that understood the Healthcare business 8 years ago!!!
You made a very good purchase at your buy-in price..
Regards.
GLTA!!
The stock markets, Has a Time Machine
Here is a chart of Walgreens selling price since 1985.
http://finance.yahoo.com/echarts?s=WAG+Interactive#symbol=WAG;range=max
just click on max
1985: Walgreens sold Drugs, Soda pop, food, cosmetics, and house hold supplies .
The facts are they also owned a Rx inventory asset, Corporate headquarters, Warehouses in addition to more real estate locations with managers who where accountable These are real hard assets that commercial banks lend against.
Unlike the investment Banks.
Wow... look at the 1985 to 2014 pricing..
Walgreens bold business plan? Guts/vision/ This saturated management team if planted in Italy or the UK with Walgreens drug stores down on the corner store planning, would be seeking Chapter 11 protection and no Global expansion. The US, is the Largest consumer with the highest payers for Drugs pr. capita in the World.
Walgreens missed several opportunities in this sector by the same folks who are running it., and should Walgreens not complete tranch2 by holding a minimum selling price needed for the Alliance Boots buyout they are smoked.
And I'm not talking about Tabacco sales.
Had it not been for Alliance Boots leadership adding revenue and the Bern Wbad JV into Walgreens 2Q earnings we would be looking at a stock trading in the 38-42.00 range.
The risk is there and the pricing change frequency will follow this stock, that's Cramers GS tag. "bulls and bears make money pigs get slaughtered:.
GLTA!!
Experience the Edge:
As you said your investment returns are in your own hands, and who you choose to access your funds for investments.
In the end you are the decision maker the CEO of your money.
And not following the stock Markets information about the companies your invested in, is each person's choice.
Financial reports SEC 8K's 10Q's of Corporations, hide many issues a Corporation is dealing with that will change a stocks pricing.
These are generally found in foot notes, that are overlooked my many investors. and some times they are hidden inside GAAP accounting rules.
M&A's Boost a corporation earnings when first accounted for, yet 80% fail to realize projections.
Just as Corporations that announce growth projections from new Directional offerings.
Food Deserts come to my mind, announced by Walgreens 2 years ago, yet the fact remains that growth in this direction is now never discussed.
Revenue Growth of in-store Nursing clinics was crowned many more years before that when Walgreens management announced(2010) they purchased Hal's Take Care operation for 350 Million.
On the 25th earning announcement(Wag) it is reported Walgreen missed earnings/profits and is closing stores, even with the Alliance Boots/ABC infusion of dividends, warrants, and profits.
How do you think the large investment Bankers will react?
Oh lets buy more!!!
New released reports show the 340B program is going to reduce
payment to several Rx suppliers..
Yes, definitely buy more..
Cash on hand is down ... buy more Wilbur!!
More common stock will be issued and available to be traded...
Corporation announced HQ Layoffs(2013)..
Walgreens Contacts(ABC) and discharges warehousing operations,
Company sells assets (HQ) offices included to optimize stock holders returned dividends..
and so on..
All solid reasons to bid the price up..
These are not the signs of Growth pr. sq. foot of Walgreens operations, to me they are the signs of Financial engineering..
Synergies will get a Company only so far in savings, Retail is about being relevant in every day life not about convenience or Advertising/Marketing PR Releases of being relevant Down on the Corner.
Block buster relied on this, Sears, K-Mart and Woolworth come to mind.
You all have done well when Walgreens hitting 70.00 a share, will this S/P return before the Large Institution rotate out?
Well I could pick this up at 64.35 but I'll wait, until I see a price and business plan outside of M&A's synergies in upside potential..
Dam, I would of liked taking that $6.00 dollars home, or the $30.00+ dollar you are sitting on..
GLTA!
Prudent, I'm not Questioning anyone's choice.
My experience is that the Market can shift like Quicksand under ones feet.
This is based on facts and the perception of the Large funds..
These Institutional Investors who own the majority of shares in this and other large Companies can turn and bring the selling price down to where you are stuck holding it for years..
The unfortunate Investors will wait until the market changes its mind..
We are not talking about Bonds, notes or loans here, liquidity is the issue I look at in owning a stock, the stock market is the market makers gaming table for the billions they have guarantees in loans to Corporations.
The stock market is their Casino, where the house(Market Makers) have the edge with millions of $$$ to buy or sell against a stock,
They have trading information that we read about hours later if we are diligent
As everyone Knows stock prices go up and down.. Taking money home is what you do at the gaming table,...This Is capitalism.
Buy low sell high..
The stock price does not change should you or I buy/sell, but if a Market maker does ...watch out..
Information is power.
GLTA!!
Heads up after reported earnings
This was a missed discussion on Retail Parmacy chain drug stores.
http://www.forbes.com/sites/chrisversace/2014/03/25/risk-of-340b-drug-program-changes-grow-and-that-means-possible-profits-hit-at-walgreens-and-others/
This may not mean much but the impact is being measured by the market makers.
GLTA!!
New is out unamanious approval,
I would think /Walgreens, CVS RAD, Walmart will be carrying this.
Big Yank
Looking for a Trade outside of Wag
Look at Exas, for tomorrow!
Robbay
Its the Golden Squids doing:
JP Morgan and the Golden Squid(Goldman SacKs) are no doubt involved with this action.
Price will return very shortly.
GLTA!!
Think about adding:
GE has been underpriced for the last several years,
as the market is going into Rotation GE is one of the best buys out there..
GLTA!!
Very Good;
Now the idea is not to lose your profits back to the Market
Makers, and buy the stock at a lower price.
We are investing with well financed institutions that have Billions loaned/invested in these large Cap corporations.
These boys/girls computers can raise or drop a Stocks price before you or I can hit the buy/sell enter key.
At this current pricing level they playing the New low highs as we are seeing this in Nasdaq and NYSE market.
Do you play options?
GLTA!
Just Google Walgreens Properties for Sale:
Here is a active one;
Pegasus Investments, as exclusive sale adviser to the Seller, presents for sale this absolute-NNN Walgreens investment property located in Orland in Glenn County. The property features over 21 years of remaining base term with Walgreens (NYSE: WAG) and benefits from being right off the main exit of the I-5 Freeway.
"The single-tenant net-leased property has no landlord responsibilities and a corporate guaranty".
I'm sure there are many types of Wag NNN contracts with Zero responsibility for the buyer, I am licensed in RE and have come across Walgreens NNN leased properties in the past.
So lets not argue these various contractual agreements..
What I was pointing out was that these 76 Walgreens stores are under preforming for a reason.
It's not like entire communities moved the houses off of the existing land.
I linked Walgreens latest Miami land buy, if you go there, just a short walk down or up this road is a New Publics Supermarket with a Pharmacy.
And if you recall I commented how Fast the Supermarkets are expanding Rx market share.. As a loss leader I have heard folks say..
Product Relevance/pricing to a stores guests was discussed in the conference call.
That is a big shift away from the corner convenience model..
employing a low cost inexperienced grab and go servicing staff who's traffic is down..
This IMO is one of the underlining problem as I listened and also shopped in Walgreens, CVS Rx stores.
So the problems are not just with these stores locations.
Looking into Walgreens structure.
Ask you self, would you have a $130,000 pr. year Pharmacy employee sitting out on the floor waiting for a roll-aids sale.??
This drug store model has worked in the past.. however the Financial numbers in the last 2-3 years are showing a different picture.
And you cant blame it all on the changing reimbursement level of US Drugs.. The highest costs in the World.
S. Pessina would love to have these US Rx payment levels in Europe.
GLTA!!
Sorry, my mistake on the cow issue
I am not confused on the Realestate issues, Here is One of Walgreens recent real estate purchases in Miami
http://www.bizjournals.com/southflorida/news/2014/03/06/walgreens-pays-7m-for-site-of-new-store.html
I would just ask you, put this into googles map satellite view.
its on a One way street.
And Walgreens is going to build a store on this, with a NNN lease commitment?
Please tell me where I'm am confused on Walgreen buying property,
Bringing in a developer to construct a Drug store building, arranging financing for the construction thru a NNN lease commitment on the property with building, and then selling this property to a REIT or who ever.
And, I recall Walgreens CFO said Walgreens was reducing its Realestate ownership to about 20%.
If I am wrong please explain.
Walgreens NNN leases carry other Costs::
Walgreen real estate Department Should be sold, reducing SG&A cost and spending..
http://www.deerfieldteam.com/brokers/listings.php
should you care to purchase, trade, sell or barter one of Walgreens properties.
Is Walgreens in the Real-estate business or the Healthcare business??
Do you not recall Walgreens sold off its maintenance Dept. to CB a few years ago under WASSIN.
I will provide a link if you wish.
Walgreens NNN store leases also carry the liability costs of property taxes, property maintenance, and Insurance.
All which will be paid with investor earnings.. maintaining Empty stores.
and if Walgreens management teams cannot turn these stores around GET RID OF THESE MANAGERS..
As for the red Herring of stores from M&A's these are consolidated/ closed.
As Walgreens recent drug Store purchases are announced with their Press releases..
So reducing this spend will return this money to stockholders.
But as you said, the good old boys, sacred cows are still running this business.
Discussing a corporations issues allows investors to value a selling price which if you depend on the media, you will lose money...
$4.00 came off the table from yesterday.
And, I do respect your Knowledge even though we sometimes disagree.
GLTA!!
Walgreens NNN leasing Terms;
These 76 soon to be closed stores are contracted(NNN LEASE) guaranteed payment by Walgreens Co. even if they are closed!!!
Walgreens leases almost all stores for up to 25 years, so if 10- 15 years are left in the NNN contracts, Walgreens Investors will be paying for empty stores until lease expiration..
So how is this Good!!!!
As for the new 55-75 stores, these are also under NNN Building/leased contracts, so Walgreens cannot get out of these building/leasing commitments and again walgreens is stuck with long term Leasing contracts..
In general it takes 3 years to turn a profit with a new location,
So, is this good with declining margins and reduced customer visits?
One interesting detail in the 2Q Balance sheet is the Inventory for 2014.
Inventories dollar amount is up from last year.
As you should be aware Rx inventory are the largest part of Walgreens yearly spend, estimated at 28 billion ..
Inventory
7,253m---- 2Q 2014
7,213m---- 2Q 2013
Yet, Walgreens CEO stated The ABC Rx transition was going well and will complete by September (6 months).
Well then, why is Inventory assets up by 40 million, perhaps this is because ABC is charging more for Rx's and Walgreens used this reason to markup its remaining inventories values .. but this also does not make sense as they must have completed a 40-60% Rx transition to be going Well in the ABC agreement .....
WSJ wrote the Walgreens ABC Rx product deal is worth 28 Billion a year to ABC.
So could someone explain to me how Walgreens 2Q 2014 Inventories are up as we are out of the major holiday seasons..
GLTA!
Walgreens missed earning and is closing 76 stores:
Customer Traffic is again down, This was the announcement from Walgreens Co. managers
Most of the presentation was fluff created inside a illusion of how much money Investors are going to make in the future(2016).
SG&A was up, net margins are down and stores staff is inexperienced in this industry, and this over paid management does not see it has operational problems.
I believe that the Former CEO from A/B who stepped down to come over to Walgreens is a sign from the financiers.
Good luck with the Higher Lows
GLTA!!
12,770,712 Shares Traded during day.
03/25/2014
$68.45 Todays high
$66.42 Todays close
03/24/2014
$64.31 close
1st years target price $69.53
What we learned from todays CC, Walgreens will not be moving to Switzerland yet, after the 3rd Quarter... no commitment on this .
Walgreens spent $60,000,000.00 removing Snow.
Lost 40,000,000.00 in Weather/Headwind related Sales.
SG&A spend increased. YOY
Stock Split off the table for now.
"1.6 Billion shares will be out standing by 2016".
"Store Clinic Roll-out + or - 100 end of 2014".
Cash Flow is Down YOY.
Beauty build-out additions not in spending plans.
NYC next spending roll out for Boots #7 brands.
Cigarettes will still be in front of Stores, unless the States AG passes new laws.
ABC Rx transition going very good, completion date for last store Sept. I estimate over 60+% completed
Walgreens Net debt of $11 Billion* excluded Off Balance Sheet Store leasing not included in debt chart.
76 Operating stores Closing down in the next 4 months and will not be included in 2014 Financials, will be carried into 2015 earning.
Can we agree on this and move on to discuss the reported numbers, and the market.
GLTA