PDA

View Full Version : [Fun with Stocks] Walgreens

Limper
10-01-2007, 11:55 AM
If anyone is sitting on cash and looking for a buying opportunity check out Walgreens.

They missed their earnings by $.07 for the quarter and have been punished RUTHLESSLY and beyond reason.

Its down close to $7.00 a share.

Pick some up cause do you really think it won't go back up or that they are going out of busniess?
FeatsofClay
10-01-2007, 12:47 PM
I have a lady from SmithBarney who is frequently in for lunch so I shouted this one out to her and she said "Tell him to check CVS, it is a much better deal right now."

I pressed her for a reason and her only reply was "Look at the financials."

Just for the info...
Limper
10-01-2007, 12:54 PM
I have a lady from SmithBarney who is frequently in for lunch so I shouted this one out to her and she said "Tell him to check CVS, it is a much better deal right now."

I pressed her for a reason and her only reply was "Look at the financials."

Just for the info...

CVS is also very nice and has the better long term prognosis... Walgreens is a great short term play cause of the over the top drop in price.

I'm hoping to pickup $3-4 a share in the short term on the trade.

Some things you buy to hold and others you buy as opportunity dictates and sell for a quick profit.

Tell her thank you I'm reading over CVS now.
doc
10-01-2007, 01:15 PM
On a non stock note, we no longer have a Walgreens here, I remember going to the diner at the old one (it was awhile ago) and eating a Ruebun sandwich with Mom :)
Limper
10-01-2007, 01:17 PM
On a non stock note, we no longer have a Walgreens here, I remember going to the diner at the old one (it was awhile ago) and eating a Ruebun sandwich with Mom :)

A while ago? 1975 is more than a while ago.
doc
10-01-2007, 01:18 PM
A while ago? 1975 is more than a while ago.

I was young once, and hungry !
Limper
10-01-2007, 01:21 PM
I was young once, and hungry !

If it was when you were young then we are talking about 1955.

Hungry could have been and day of any year.
doc
10-01-2007, 01:28 PM
If it was when you were young then we are talking about 1955.

Hungry could have been and day of any year.

Smartass :), it was 1970 something and I like my food.
Limper
10-01-2007, 01:32 PM
Smartass :), it was 1970 something and I like my food.


Had they invented Cars and TV yet?
doc
10-01-2007, 01:36 PM
Had they invented Cars and TV yet?

Model As and if there was a Transvestite in town I never saw em.
Bones
10-01-2007, 01:57 PM
Thanks for the tip.
Janos
10-01-2007, 02:02 PM
Walgreen had a large contract with us that has been put on hold pending cash flow shortages to satisfy stockholders who are extremely unhappy right now. Forecast doesn't look good for them right now considering those were needed repairs.
Limper
10-01-2007, 02:05 PM
Walgreen had a large contract with us that has been put on hold pending cash flow shortages to satisfy stockholders who are extremely unhappy right now. Forecast doesn't look good for them right now considering those were needed repairs.

That will pass. It takes folks a while to realize that you can't double your growth year after year forever... its like Walmart in that respect.

I've also put in a limit on CVS just in case it keeps up with the dip its taking.
Janos
10-01-2007, 02:49 PM
That will pass. It takes folks a while to realize that you can't double your growth year after year forever... its like Walmart in that respect.

True, but even if the company employees may have realized that, but the stockholders? Since when have they cared?

If they're squeezing the profits out in place of needed repairs, it means big changes will be in the wind on some level. It's just a matter of whether or not those changes will be hindering to the stability of the company, because it is definately going to cap growth for awhile or cannabalize itself for a sell-off/buy-out.
Limper
10-01-2007, 03:06 PM
True, but even if the company employees may have realized that, but the stockholders? Since when have they cared?

If they're squeezing the profits out in place of needed repairs, it means big changes will be in the wind on some level. It's just a matter of whether or not those changes will be hindering to the stability of the company, because it is definately going to cap growth for awhile or cannabalize itself for a sell-off/buy-out.

The Growth junkies will get irritated and leave (sell off) and the value and growth and income folks will start buying in. The big change they need to make is to realize at the compnay level that insane growing is reaching a close.

Overall they have been pretty shrewd for a long time so I think they'll get it in the near future.

I'm in this till I make a couple hundred... its a short term opportunity in my book and thats all.
TiQuinn
10-01-2007, 04:10 PM
It could line up for a classic turnaround play. It's been a solid company in the past, and depending how far it dips, it could get dragged down past its fair value. The whole drug store industry seems expensive right now though: 17 to 22 P/E ratios across the board. I personally like 'em lower.
Limper
10-31-2008, 12:06 PM
Just a follow up on this.

In the end I lost $14 a share on this deal and although it may turn around still I have plenty of time to get back in because they aren't getting anywhere fast.

I could have added to the position while it was down on a few occasions and that would have made it a money making play but I didn't because I was more attracted to other plays with better dividends.