Replies to post #1532 on Walgreens Boots Alliance Inc (WBA)

[Robbay]

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

[Prudent Capitalist]

Nice gains in the PPS while I was away in Miami Beach, but I see nothing has changed here on the Board. The more one rants and brings up old apparent grudges and subjects which have been beaten to death over the past 15 months, the more the share price goes up. Such is life at this point, and it is not likely to change. The PPS has essentially doubled since we were all advised to dump all of our WAG shares and short the stock. OMG! Sushi in 14 stores in the network, end of the world! LOL! And, for those of us who have reinvested our WAG dividends for years, and taken advantage of free dividend reinvestment, the gains are even greater.

So, as I settle back into normalcy after the week in Miami Beach (Paris Hilton had her birthday bash at the Fontainebleau while we were there) I will get caught up on all my stocks including WAG, and look forward to the end of February statements. Should be great, especially with the rapidly growing WAG positions.

And remember, the greater the rants the higher the share price!