Shoppers Drug Mart Corp

SC-T

0.00
0.00 (0.00%)
This company is not ACTIVE.

Analysis and Opinions about SC-T

Signal
Opinion
Expert
DON'T BUY
DON'T BUY
January 25, 2013

Almost like they are in a regulated market. A good part of their business has significant pressure on it to bring prices down. Doesn’t expect there will be any change in this. The drug side was a good part of the profitability side.

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Almost like they are in a regulated market. A good part of their business has significant pressure on it to bring prices down. Doesn’t expect there will be any change in this. The drug side was a good part of the profitability side.

BUY
BUY
January 21, 2013

Lowered his one-year target price from $48-$47 but still likes the name. Thinks they will be the biggest beneficiary of these deflationary headwinds. It will hurt the smaller players more. Their game plan is to buy the smaller players. Good company.

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Lowered his one-year target price from $48-$47 but still likes the name. Thinks they will be the biggest beneficiary of these deflationary headwinds. It will hurt the smaller players more. Their game plan is to buy the smaller players. Good company.

COMMENT
COMMENT
January 18, 2013

Has been trading on either side of 2X Book Value. Strangest pattern he has seen in a long time. Suggests to him that the market is very uncertain as to whether they should call this company a “recovering growth stock” or a “growth stock that is now failing”. Has not made up his mind yet. 2.4% dividend.

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Has been trading on either side of 2X Book Value. Strangest pattern he has seen in a long time. Suggests to him that the market is very uncertain as to whether they should call this company a “recovering growth stock” or a “growth stock that is now failing”. Has not made up his mind yet. 2.4% dividend.

DON'T BUY
DON'T BUY
October 31, 2012

Stock has been pretty dead for the last couple of years. Have some challenges on the profitability side. Notwithstanding the fact that they continue to roll out new stores and grow their square footage they have been very challenged on the prescription side due to some regulatory legislative changes. Stock has never been a cheap stock and he doesn’t see a whole lot of upside. 2.5% dividend yield.

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Stock has been pretty dead for the last couple of years. Have some challenges on the profitability side. Notwithstanding the fact that they continue to roll out new stores and grow their square footage they have been very challenged on the prescription side due to some regulatory legislative changes. Stock has never been a cheap stock and he doesn’t see a whole lot of upside. 2.5% dividend yield.

TOP PICK
TOP PICK
October 23, 2012

Generating so much free cash flow that they don’t know what to do with it so they are buying back shares and raising dividends. Facing competitive risks but they have terrific real estate. Canadian demographics is that we are getting older and we have to keep going to the pharmacies more often. Looking for them to grow earnings at 3%-5% a year.

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Generating so much free cash flow that they don’t know what to do with it so they are buying back shares and raising dividends. Facing competitive risks but they have terrific real estate. Canadian demographics is that we are getting older and we have to keep going to the pharmacies more often. Looking for them to grow earnings at 3%-5% a year.

BUY
BUY
October 11, 2012

Felt that they had been trapped in a range but Ontario government announced that they would be paying pharmacists $7.50 to give flu shots. Also announced other changes giving pharmacies the right to renew prescriptions. So the government is basically trying to get you out of the doctors’ offices for anything minor.

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Felt that they had been trapped in a range but Ontario government announced that they would be paying pharmacists $7.50 to give flu shots. Also announced other changes giving pharmacies the right to renew prescriptions. So the government is basically trying to get you out of the doctors’ offices for anything minor.

PAST TOP PICK
PAST TOP PICK
October 1, 2012

(A Top Pick Sept 22/11. Up 5.71%.) Sold half his holdings at over $44. Feels there is still a lot of deflation coming in prescription drugs. However, the last quarter demonstrated why he likes it. A powerful industry consolidator and a lot of pharmas are going to be able to be competitive. There is a trend towards higher generic usage, meaning more margins for them. Very effective retailers. Good costs discipline.

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(A Top Pick Sept 22/11. Up 5.71%.) Sold half his holdings at over $44. Feels there is still a lot of deflation coming in prescription drugs. However, the last quarter demonstrated why he likes it. A powerful industry consolidator and a lot of pharmas are going to be able to be competitive. There is a trend towards higher generic usage, meaning more margins for them. Very effective retailers. Good costs discipline.

HOLD
HOLD
August 29, 2012

Really well managed company. Got hit by regulations that didn’t allow them to make profits on generics that they were making. This took a lot of growth potential out of the company but have been able to reengineer themselves to deal with the retail side and generating more profits. Growth rate is not what it used to be and there is more pressure coming from new retailers. He could see a 5%-10% move in the stock but he would want better.

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Really well managed company. Got hit by regulations that didn’t allow them to make profits on generics that they were making. This took a lot of growth potential out of the company but have been able to reengineer themselves to deal with the retail side and generating more profits. Growth rate is not what it used to be and there is more pressure coming from new retailers. He could see a 5%-10% move in the stock but he would want better.

PAST TOP PICK
PAST TOP PICK
July 24, 2012
(A Top Pick July 21/11. Up 5.47%.) Have a great model. The problem is the government and how they change the rules. Just reported and front of store sales grew nicely. Prescription sales had 1%-2% growth.
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(A Top Pick July 21/11. Up 5.47%.) Have a great model. The problem is the government and how they change the rules. Just reported and front of store sales grew nicely. Prescription sales had 1%-2% growth.
PAST TOP PICK
PAST TOP PICK
July 18, 2012
(A Top Pick Sept 22/11. Up 7.08%.) The disinflation trend in prescriptions is going to continue and that is going to scare a lot of people away. This company actually benefits from that because the more marginal players will have a harder time opening them up as possible acquisitions.
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(A Top Pick Sept 22/11. Up 7.08%.) The disinflation trend in prescriptions is going to continue and that is going to scare a lot of people away. This company actually benefits from that because the more marginal players will have a harder time opening them up as possible acquisitions.
PAST TOP PICK
PAST TOP PICK
June 21, 2012
(A Top Pick Sept 22/11. Up 2.43%.) In a tough spot because of all the deflationary pricing that they are getting from prescriptions. However they are going to be able to pick up the pieces compared to the others. Just starting on a path to a lot of acquisitions.
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(A Top Pick Sept 22/11. Up 2.43%.) In a tough spot because of all the deflationary pricing that they are getting from prescriptions. However they are going to be able to pick up the pieces compared to the others. Just starting on a path to a lot of acquisitions.
PAST TOP PICK
PAST TOP PICK
June 20, 2012
(A Top Pick May 18/11. Up 1.36%.) Still likes it. Multiple is about 13X next year’s earnings. Still working their way through the changes to the formula prices that the governments are willing to pay. About 2.5% yield.
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(A Top Pick May 18/11. Up 1.36%.) Still likes it. Multiple is about 13X next year’s earnings. Still working their way through the changes to the formula prices that the governments are willing to pay. About 2.5% yield.
PAST TOP PICK
PAST TOP PICK
June 12, 2012
(A Top Pick July 6/11. Up 1.65%.) You have to focus that this is a cash compounding machine. Generates an enormous amount of free cash flow, which they are using to buy back shares. Nice dividend increases.
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(A Top Pick July 6/11. Up 1.65%.) You have to focus that this is a cash compounding machine. Generates an enormous amount of free cash flow, which they are using to buy back shares. Nice dividend increases.
PAST TOP PICK
PAST TOP PICK
May 14, 2012
(A Top Pick May 18/11. Up 2.04%.) Still likes. Well positioned within the industry. Still has some headwinds to face from the changing of the pricing, particularly in Ontario, on the pharmaceutical side. Have been making great strides in the front store. Very well-managed.
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(A Top Pick May 18/11. Up 2.04%.) Still likes. Well positioned within the industry. Still has some headwinds to face from the changing of the pricing, particularly in Ontario, on the pharmaceutical side. Have been making great strides in the front store. Very well-managed.
PAST TOP PICK
PAST TOP PICK
April 26, 2012
(A Top Pick Sept 22/11. Up 5.34%.) Same store sales have been very good and they have increased the writing of prescriptions. The deflationary pricing will hurt a lot of the smaller businesses and the business will come to this store.
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(A Top Pick Sept 22/11. Up 5.34%.) Same store sales have been very good and they have increased the writing of prescriptions. The deflationary pricing will hurt a lot of the smaller businesses and the business will come to this store.
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