Walgreen Boots Alliance (WBA-Q)

He bought CVS instead. WBA did a big purchase of Boots which they may be regretting. WBA really operates pharmacies, plus a medical business. He prefers CVS for Aetna, their insurance business, pharmacy benefits and a medical business.

Avoid, because of poor execution and being in a poor sector. There will be a tax on online delivery services. Too many problems.

It will go down only 9 more points. The new CEO needs to invest AI, cut overhead and increase profit. 

Problems. Avoid. Called "value", but continues to move south. Technically, 200-day MA is going lower and stock price is below that. 5x forward PE, but earnings growth is negative.

The alliance had all this promise, and just hasn't been able to deliver. He's not brave or smart enough to pick the bottom on a stock like this. He owns Loblaw and, with it, Shopper's Drug Mart.

Beware of companies closing stores and calling that successfully. Closing stores is never good. This whole space has been challenged. He had a poor experience holding the peer, CVS. WBA was just kicked out of an index.

One of the things he looks at is sustainability of dividends. Are you paying your dividends through free cashflow? Cut dividend. Struggled ever since acquiring Boots in the UK a decade ago, which has crippled the company.

Stock's been completely annihilated. It's only in the drugstore chain business, which has been really tough.

Down 17% in Q1, plus another 10% today. The CEO though could turn things around in a year. No hurry to buy this one.

Wait another quarter to see what the CEO will do. Don't jump the gun. It's a troubled company.

They need to cut their dividend and present a plan.

It reports Thursday. The company is in disarray and can't see a way out of this mess. For instance, they have located two stocks a few blocks apart. in one city. They have no idea what they're doing.

Cracks appeared here when their CEO suddenly left. Also, are plagued by theft (shrinkage) like much of retail. Only the name brand is a positive.

Since 2014 - stock has not performed well.
Much prefers CVS.
Pharmacy sales impacted after Covid-19.
Recession will also be tough on business.
Dividend yield fairly safe.
Better names for growth and value.  

Down 20% in the last 6 months. Their problem is that they are the ultimate brick-and-mortar company at a time when Amazon is crushing their performance.