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Re: wshaw14 post# 2497

Tuesday, 04/04/2017 5:26:46 PM

Tuesday, April 04, 2017 5:26:46 PM

Post# of 3158
WBA here will be fine either way, as pointed out in another article out today:

The WBA/RAD Merger

Rite Aid shareholders are more focused on Walgreens’ earnings than those owning WBA stock. For Walgreens, acquiring Rite Aid would spur much-needed growth, but the bull case for WBA stock does not rest solely on this deal. Walgreens still pays a nearly 2% dividend — which has increased every year for 41 years. Its steady growth and stable revenue base makes it a core long-term holding. For Rite Aid, however, the merger looks more critical.

Rite Aid continues to struggle with an $8 billion-plus debt load and falling profits. Deutsche Bank said last week that it believed RAD stock would be worth just $2.25 if the Walgreens deal failed. And with RAD stock trading at $4.19, against an offer price of at least $6.50, investors appear to be pricing in a less-than-50% chance of the Walgreens takeover occurring.


http://www.msn.com/en-us/money/topstocks/how-walgreens-boots-alliance-inc-wba-stock-will-trade-after-earnings/ar-BBzlty6
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