WBA-Q
They reported earnings today that were better than market expectations. The opioid crisis is creating some concern among investors in general in this space. Overall a good company that generates a lot of cash.
They reported earnings today that were better than market expectations. The opioid crisis is creating some concern among investors in general in this space. Overall a good company that generates a lot of cash.
CVS Health Corp (CVS-N) vs Walgreen Boots Alliance (WBA-O) or stay out of health care? He prefers Walgreen between the two, due to their Rite Aid acquisition. They feel that a safer option is AmerisourceBergen (ABC-N) as they are more on the distribution side.
CVS Health Corp (CVS-N) vs Walgreen Boots Alliance (WBA-O) or stay out of health care? He prefers Walgreen between the two, due to their Rite Aid acquisition. They feel that a safer option is AmerisourceBergen (ABC-N) as they are more on the distribution side.
This has taken longer than he originally thought despite double digit growth. It is now trading only 12 times earnings. Management is visionary and will survive despite pressure from Amazon. Selling drugs online will have challenges for the competition. Owns $500-$600 million of this stock. Yield 2.3%. (Analysts’ price target is $85.58 )
This has taken longer than he originally thought despite double digit growth. It is now trading only 12 times earnings. Management is visionary and will survive despite pressure from Amazon. Selling drugs online will have challenges for the competition. Owns $500-$600 million of this stock. Yield 2.3%. (Analysts’ price target is $85.58 )
They spent a lot of time in the penalty box last year. The several hundred stores in a recent acquisition will be accretive. It is felt that Amazon will get into the pharmacy business. You will like to get advice on your prescriptions when you refill them. It is only 14 times earnings and increased the dividend 42 years in a row. Expectations are for a raise again this year.
They spent a lot of time in the penalty box last year. The several hundred stores in a recent acquisition will be accretive. It is felt that Amazon will get into the pharmacy business. You will like to get advice on your prescriptions when you refill them. It is only 14 times earnings and increased the dividend 42 years in a row. Expectations are for a raise again this year.
It came up off the bottom after going sideways for a year or two. They finally got approval from regulators on their acquisition of Boots. 13 times earnings. 42 years in a row of dividend increases. AMZN-Q is not getting into the pharmacy business tomorrow. (Analysts’ target: $87.00).
It came up off the bottom after going sideways for a year or two. They finally got approval from regulators on their acquisition of Boots. 13 times earnings. 42 years in a row of dividend increases. AMZN-Q is not getting into the pharmacy business tomorrow. (Analysts’ target: $87.00).
This is in a tough spot together with CVS, because of their pharmacies and the Amazon (AMZN-Q) factor. There is a fear that Amazon is going to enter the market and take business away from them. It wasn’t long ago that Amazon bought Whole Foods, and the talk on the street was that they were going to destroy Walmart by taking the grocery business away from them. However, Walmart responded. There is going to be a response on this, and we are already seeing it in the industry.
This is in a tough spot together with CVS, because of their pharmacies and the Amazon (AMZN-Q) factor. There is a fear that Amazon is going to enter the market and take business away from them. It wasn’t long ago that Amazon bought Whole Foods, and the talk on the street was that they were going to destroy Walmart by taking the grocery business away from them. However, Walmart responded. There is going to be a response on this, and we are already seeing it in the industry.
The drug store arena has lots of M&A going on. They finally got regulatory approval to buy 1000 rightaid stores. This news is in the past. They need to increase prescriptions because that is where the money is but WBA-N cannot show it.
The drug store arena has lots of M&A going on. They finally got regulatory approval to buy 1000 rightaid stores. This news is in the past. They need to increase prescriptions because that is where the money is but WBA-N cannot show it.
All retail pharmacy companies are being Amazoned right now, because Amazon just announced that they want to apply for a pharmaceutical distribution license. The other problem with pharmacies is that back of the store revenues have started to decline. The front of the store has really fallen off the map. He is completely avoiding the retail sector.
All retail pharmacy companies are being Amazoned right now, because Amazon just announced that they want to apply for a pharmaceutical distribution license. The other problem with pharmacies is that back of the store revenues have started to decline. The front of the store has really fallen off the map. He is completely avoiding the retail sector.
It has been a soft performer (weak). There is a concern about AMZN-Q getting over aggressive over time on Pharmacy. But the business is not that simple and the retail chain adds a lot of value. The process is very efficient and they have a lot of buying power. AMZN-Q is absolutely a threat but if you look at the WBA-Q, a lot is baked in at today’s price.
It has been a soft performer (weak). There is a concern about AMZN-Q getting over aggressive over time on Pharmacy. But the business is not that simple and the retail chain adds a lot of value. The process is very efficient and they have a lot of buying power. AMZN-Q is absolutely a threat but if you look at the WBA-Q, a lot is baked in at today’s price.
There has been a lot of outside pressure in the space. It is more about what people think is going to happen but hasn’t actually happened yet. It looks quite cheap.
There has been a lot of outside pressure in the space. It is more about what people think is going to happen but hasn’t actually happened yet. It looks quite cheap.
The movement into pharmacies is great, as the baby boomers need more pills. He understands that once a pharmacy gets a prescription coming into the store, those customers stay. This is a great global play. It’s the largest pharmacy in the US and has one of the largest in the UK. The stock has not worked, because there are just too many moving parts, but it does make sense in a longer-term basis.
The movement into pharmacies is great, as the baby boomers need more pills. He understands that once a pharmacy gets a prescription coming into the store, those customers stay. This is a great global play. It’s the largest pharmacy in the US and has one of the largest in the UK. The stock has not worked, because there are just too many moving parts, but it does make sense in a longer-term basis.
(A Top Pick Sept 7/16. Up 0.47%.) It hasn’t done much over the past year in light of some of the competitive pressures in the industry and some of the overall challenges. He continues to own this, because they have a visionary leader with a very articulate intelligence strategy of how to create value, and they are good with capital allocation. This is ultimately going to be recognized by people throughout the chain.
(A Top Pick Sept 7/16. Up 0.47%.) It hasn’t done much over the past year in light of some of the competitive pressures in the industry and some of the overall challenges. He continues to own this, because they have a visionary leader with a very articulate intelligence strategy of how to create value, and they are good with capital allocation. This is ultimately going to be recognized by people throughout the chain.
Not that familiar with this, but it is in the right industry of drug distribution and getting product to people in their homes. There are 2 different businesses. You have the US business where you have healthcare insurance companies controlling the price and distribution. In the UK, you have a national government system. Retail distribution systems are under pressure globally, and these companies are trying to move into other businesses. He wouldn’t want to take the risk of being there while they are doing this transition.
Not that familiar with this, but it is in the right industry of drug distribution and getting product to people in their homes. There are 2 different businesses. You have the US business where you have healthcare insurance companies controlling the price and distribution. In the UK, you have a national government system. Retail distribution systems are under pressure globally, and these companies are trying to move into other businesses. He wouldn’t want to take the risk of being there while they are doing this transition.
This has been a disappointment. They are facing the back of the store challenge, in terms of a mix towards generics, a lower margin business than the pure pharmaceutical. Counteracting that are demographics. People are getting older, and as they get older they take more pills. There is also the Amazon affect with the e-commerce model affecting retailers. He doubts Amazon wants to get involved with a regulated environment. Longer-term, he thinks these are very good franchises. Earnings continue to do well. (See Top Picks.)
This has been a disappointment. They are facing the back of the store challenge, in terms of a mix towards generics, a lower margin business than the pure pharmaceutical. Counteracting that are demographics. People are getting older, and as they get older they take more pills. There is also the Amazon affect with the e-commerce model affecting retailers. He doubts Amazon wants to get involved with a regulated environment. Longer-term, he thinks these are very good franchises. Earnings continue to do well. (See Top Picks.)
Battling to buy Rite Aid (RAD-N) and are coming up with some pressure and push back. He prefers CVS (CVS-N) on a relative valuation. Trades at a premium to CVS, so he would wait for some sort of pullback. If the Rite Aid deal falls through, he presumes Rite Aid shares would fall off, which would be a good time to purchase the stock.
Battling to buy Rite Aid (RAD-N) and are coming up with some pressure and push back. He prefers CVS (CVS-N) on a relative valuation. Trades at a premium to CVS, so he would wait for some sort of pullback. If the Rite Aid deal falls through, he presumes Rite Aid shares would fall off, which would be a good time to purchase the stock.
