Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Walgreen debacle
Old 10-01-2007, 01:25 PM   #1
Dryer sheet wannabe
 
Join Date: Apr 2007
Posts: 18
Walgreen debacle

I have owned wag for 15 years and it has been a consistent performer. Today they missed earnings "big time". Any "Kramers" out there with knowledge on whether to hold, sell or buy more?
DMS is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-01-2007, 01:35 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 4,005
I work in a property development-related industry, and we are seeing tons of new Walgreens and CVS's (among other pharmacies) being built right now. I haven't taken a single glimpse at their balance sheets, but it seems like they might be oversaturating the market and cannibalizing same store sales. Around here, there seems to be at least two competing drug stores at every main intersection (and more on the way in a city near you!). I've also noticed average store size creeping up and up. Most new stores are weighing in around 15,000 square feet, up significantly from 8-10 years ago. I guess they are looking to have a wider selection of retail items in their stores now.

Recent pharmacy growth reminds me of walmart up until this year. Walmart has slowed down to a crawl in opening up new stores - probably will see very few new stores opening in 2009, at least in the SE united states. Saturation of the market, cannibalization, and lagging YoY same store sales (from what I've heard anecdotally).
justin is offline   Reply With Quote
Old 10-01-2007, 03:37 PM   #3
Thinks s/he gets paid by the post
bright eyed's Avatar
 
Join Date: Jan 2007
Posts: 1,891
I recall some cvs exec quote about how many new stores they are opening per day/week...

my pure consumer/non-research pov is that walgreens is a bit shoddier in how they run their stores than some of their competitors...it will catch up w/ them. rite aid (at the ones i've been to, up and down CA), tend to be cleaner, better organized and better staffed.
__________________
If i think of something clever to say, i'll put it here...
bright eyed is offline   Reply With Quote
Old 10-01-2007, 03:52 PM   #4
Recycles dryer sheets
 
Join Date: Nov 2006
Posts: 77
If you look at the list of stocks with the biggest percent decline for the day, almost all the pharmacies made the list somewhere, with WAG at the top of the list.
Anansi is offline   Reply With Quote
Old 10-02-2007, 05:21 PM   #5
Thinks s/he gets paid by the post
maddythebeagle's Avatar
 
Join Date: Jun 2005
Posts: 2,450
In Walgreen We Don't Trust - Forbes.com

Yeah, I would look at them...seem oversold....
maddythebeagle is offline   Reply With Quote
Old 10-02-2007, 06:40 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
dex's Avatar
 
Join Date: Oct 2003
Posts: 5,105
A Walgreens just opened across the street from a Publix and Krogers, a block away from a WalMart and Duane Reed Drugs. I don't get it.
__________________
Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral
dex is offline   Reply With Quote
Old 10-02-2007, 06:44 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Mar 2003
Posts: 18,085
There is probably a buying opportunity lurking here. Reminds me of when P&G went from the 90s to the 50s in short order after a similarly trivial earnings miss. Problem is that even after the stock got whacked we are looking at a stock trading at, what, 20X earnings. Not exactly deep value territory.

I wouldn't let the "saturation" naysayers get you down. People have been saying that about WAG for years and it still has yet come to pass. Heck, there were 3 or 4 drugstores in my town and the neighboring one (total pop sub 20k people), not counting grocery store pharmacies, yet now that the WAG has opened in their midst it is our first choice ased on selection, price, location and how it is run.
__________________
"All animals are equal, but some animals are more equal than others."

- George Orwell

Ezekiel 23:20
brewer12345 is offline   Reply With Quote
Old 10-02-2007, 06:58 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,304
Quote:
Originally Posted by bright eyed View Post
I recall some cvs exec quote about how many new stores they are opening per day/week...

my pure consumer/non-research pov is that walgreens is a bit shoddier in how they run their stores than some of their competitors...it will catch up w/ them. rite aid (at the ones i've been to, up and down CA), tend to be cleaner, better organized and better staffed.
No saturation problem here in the DC area. CVS and the Grocery chains dominate. Safeway and Giant (Royal Ahold) "own" most of the prime spots. The grocery chains won't let any pharmacies open in thier spaces. If I never go into another CVS, it'll be too soon. The one's here are very disorganized, empty shelves, whacko checkout line noone can figure out who's next in line, etc. Nearest Walgreen's is 11 miles from me. There are is a new rite aid 4 miles from here. The thing I like about Wal-greens is consistent store layout. They're all the same (either left or right-handed). We used them when we lived in Indy. They used to have proprietary prescription software that made thier pharmacies more efficient and pioneered drive thru pharmacy.
jazz4cash is offline   Reply With Quote
Old 10-03-2007, 09:57 AM   #9
Thinks s/he gets paid by the post
bright eyed's Avatar
 
Join Date: Jan 2007
Posts: 1,891
i saw rats in the DC CVS in the hood i used to live in!
__________________
If i think of something clever to say, i'll put it here...
bright eyed is offline   Reply With Quote
Old 10-03-2007, 01:13 PM   #10
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 2,375
Quote:
Originally Posted by bright eyed View Post
i saw rats in the DC CVS in the hood i used to live in!
Dupont Circle ?...My store for a while... Lobbyist Rat or Politico Hack Rat? ,,,some of them are rather large...
Danny is offline   Reply With Quote
Old 10-03-2007, 02:57 PM   #11
Thinks s/he gets paid by the post
bright eyed's Avatar
 
Join Date: Jan 2007
Posts: 1,891
Near adam's morgan...
__________________
If i think of something clever to say, i'll put it here...
bright eyed is offline   Reply With Quote
Old 10-04-2007, 11:36 AM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
Is that close to adam's johnson?
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Old 10-04-2007, 05:09 PM   #13
Dryer sheet wannabe
 
Join Date: Apr 2007
Posts: 18
Adam made my decision, I am selling my walgreen.
DMS is offline   Reply With Quote
Old 10-04-2007, 06:23 PM   #14
Thinks s/he gets paid by the post
thefed's Avatar
 
Join Date: Oct 2005
Posts: 2,203
walgreens just opened across form the rite aid down the street from us....seems they are ready to take em out! the cvs is about 3 miles down the same road, and another is maybe 3 miles away down an intersecting road....geez....then there's another cvs just 4 miles further down the same road.....seems liek there's more than i realized!
thefed is offline   Reply With Quote
Old 10-09-2007, 03:27 PM   #15
Dryer sheet wannabe
 
Join Date: Feb 2006
Posts: 12
I hail from Wags home turf. Every employee I've ever known has said how hard they're pushed. Now they say they're being pushed even harder.

This is one tough company. I'm looking into buying.
katwoman is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


» Quick Links

 
All times are GMT -6. The time now is 12:20 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.