Kudos, to your Investment profits in Walgreens.
I just not do see Walgreens plans as a game changer.
And by 2016 no one knows what will occur in Rx Drug store profits.
Yes, the Alliance Boots merger was a good move to offset the loss from the Esrx cluster F****.. your word.
As that issue is behind Walgreens today, the resulting financial loss of ESRX has not been recaptured and may never be.
Healthcare companies for the next 3 years are the holly grail for Wall-streets trading book, so don't brand me with calling anyone Stupid investing in this sector.
I'm looking at the underlying fixed cost structure of these older corporations, yes Boots, Walgreens, CVS and RAD are faced with the lower fixed cost structures from there competitors WMT, and others.
Alliance wholesale bought-out Boots the London Chemist not the other way around.
Walgreens modeled it's Alliance Boots Buyout giving the majority ownership of this Company to Alliance Boots Chairman.
In Dealing with the increasing Debt Walgreens keeps undertaking, this is the expertise and Tools of AB/KKR not Walgreens.
So a Franchise system is a possibility and not off the table based on Alliance's structure in growth planning!
So, Backing-up this information into the Hedge funds question, Hedge Funds do not take long term positions in equities, that is not what they do to make money..
I don't know the answer, but IMHO it involves the 2 step M&A process.. bond trading, debt borrowing, option pricing, and issuing new stock, even without a stock split.
CVS is getting Cash from its JV with CAH
And RAD is getting a more competitive portfolio of services with better pricing from McKesson.
And Walgreens is recieving a Larger Bill from its Lenders/creditors with a larger market with no profit growth results yet.
So whatever was presented by Alliance Boots and Walgreens in London to these Large investors is not the story retail investors are trading on, IMHO.
AB/KKR
