Walgreens Boots Alliance Inc (WBA)

[big-yank]

Taking a stroll down investment Memory Lane...

One of my most lucrative investments, ever, was in Albertson's Supermarkets when they moved into the Tampa, Florida market in the late 70's and took Winn-Dixie, Publix & Kash & Karry (now Sweet Bay in the Hannaford's portfolio) to the proverbial woodshed with dominant pricing, assortment and store layout superiority. I loved their stores, I bought their stock and it minted money for several years. It was a LOT like Walgreens stores and stock in the years under Walgreen family leadership and even to the time of Dave Bernhauer.

I sold Albertson's when I became worried about "willy nilly" store count growth by acquisition and their confusing deals to buy and sell Eckard/Brooks to stick the today debt-riddled Rite Aid with a true Trojan Horse of epic dimensions that just keeps draining poor RAD shareholders of any future. You would be hard put to find any RAD shareholders EVER drinking a toast to Jean Coutu!

As quickly as Albertson's rose... Albertson's sank under the weight of naiively valued acquisitions and deals that exceeded the company's ability to integrate and manage their treasure. Most of their middle-America acquisitions, so promising on paper, were sold for a pittance or simply shut down. When Supervalue bought the remnants for a song, many thought my old acquaintance Wayne Sales (of KMart pedigree) had scored a huge win. I ran and hid under the bed... for which I am most thankful.

There is a lot in the current Walgreens scene that reminds me of the Albertson's saga and how it eventually played out.

Caveat emptor!

Yank