I get a 10% discount being an employee from there. Do you think the price will drop anymore, you business freaks? Was at $35-$37 last couple weeks.... down to $27.93 now.
Just because you get a 10% discount doesn't really mean much. If you look at the price action over the past few months you can see that since September till Friday, WAG stock has dropped 22%. That is in about one month's time. I generally wait for some confirmation of a bottom then buy when some sort of short term uptrend is established. Right now, you are "trying to catch a falling knife." Not very advisable. On the flip side, WAG has strong long term support at $28.00 which is a bullish sign. Like I said earlier, wait around until you see some basing of the price action. Fundamentally, you would have to do your own research whether the prospects of WAG are strong or not. This is just a technical breakdown of what I see on WAG.
Definitely don't invest in BigCharts.com...that graph sucks. It's almost white on white on white. Otherwise, invest in liquor. That's how this country will drown its sorrows when the second Great Depression occurs six months into the next presidency...whoever it is.
Man, that support area is like 13 years old or so. And I can't seem to tell for sure whether it's at $25 or $28...maybe I need a better chart. Either way, I would stay the hell out of this stock. I'd wait until there's a clear sign of a turning point before even thinking about it. You're a newbie, don't try to catch a falling knife. Employee stock purchase plans can cause you to lose lots of money, discounts and all -- trust me, I know from experience. Even many professionals are staying on the sidelines right now. Only experienced traders or knowledgeable/savvy long term investors should be messing around with this market. Lately even the basic rules of technical trading analysis have failed to hold with so much volatility.
I personally don't have a position in WAG, but was talking to a colleague about this specific stock the past few weeks. With your 10% discount, you are getting great value. Here's why: 1. Most equities go through a period of excessive future earnings projections in the future. If you look back at 1998, they had a P/E near 50, what you have now is under 14. With your 10% discount, again you are getting in around 13ish P/E. Over the last 10 years earnings on the bottom line have grown very well. 2. For retail, the SSS (same store sales) number is looked at pretty closely, I couldn't give a damn about it personally because it's bias toward excessive increase in square footage in the near term. What I would look at if you still want to gauge the sales is the Price to Sales number and here what you have since 1998 is a compression from 1.9 to .5 3. The generic drug cycle for 2009-2010 is a beauty. Last two years haven't been that great. The biggest problem with the PFE and MRK are their pipeline for the next 5 years, but this is actually great for WAG, CVS, and Rite Aid. First year generic conversion of new customers has a solid stream of cash flow. 4. Actually in the process of ordering the annual reports, and here I want to see if they own any of their locations. If leased, that's fine. If owned, you are looking at P/B of 2 which might be understated because real estate is stated on historical cost. Further, it would change the depreciation picture as well which might have a multiple expansion on the Free Cash Flow. 5. This is a very concentrated industry, CVS and WAG each have 17% share with Wal-Mart and Rite Aid at 10% each. So really you have four company's that control a little over 50%. Contrary to what you might think, Wal-Mart's $4 prescription didn't have an effect on their share. This is remarkable considering the presence Wal-Mart has. Because you work there, you have a better feel for the operations and here I have very little insight. However, I'd like for you to look at the special 10% discount another way, the last two deals Buffett has done (GE and GS) with the preferred shares had a 10% coupon, granted they include warrants, but I'd look at his 10% coupon more closely because that seems to be his discount rate for the time being. Last year whe TXU was taken over and he purchased the bonds, again the yield to maturity at the time was 10%. I wish the best of luck, but you really don't need luck with the 10% discount your getting, it's a good bet. Like I said, I don't have a position, and really it's my personal market cap limitations (under 5 billion) that's holding me back . S.K.
I've worked for Walgreens and paid pretty close attention to their business. I can tell you that they're on the conservative side in terms of growth, and they have very little debt compared to other pharmacies. Basically I like their approach and think that they're undervalued based on the fundamentals. Which Walgreens are you at in Houston? Are you a pharmacist, tech, or store manager?
Fundamentals go out the door when there is a market panic sell off. Also we are facing deflation. Futures are down 86 as i type this. I see the dow at 9000 soon. I wouldn't buy anything right now. If you are dead set on buying, buy in chunks like 15-25 percent at a time.
Well obviously buying stocks is like gambling and there is no such thing as a sure thing. There are many companies out there with stock undervalued right now due to so many people dropping out of the market for safer investments. I see right now as an opportunity if you really research before you buy. However, there isn't a big indication that the market is just going to bounce back in the immediate future. I also happen to believe that AIG is going to come back strong (though not like before) and is worth taking the risk at $3.50 a share. However, with that company, it can go to zero
I think because everyone and their grandma thinks the market is heading south this upcoming week, the market powers will surprise to the upside. I won't be too surprised if we see surprise Fed action prior to Monday open which will cause some short term rally.
Should I buy Walgreens stock now? ___ Dude, jump all over this deal -- once in a lifetime opportunity.
it looks very intriguing with the recent market crash and with your 10% discount i like it. how does the 10% discount work? is it just based on the closing print the day you want to buy or is it an average of a certain period of time? anyhow...wag is a nice defensive (http://www.investopedia.com/terms/d/defensivecompany.asp) name that should see some buying after people realize it is a pretty cheap company based on p/e ratio with low debt to equity. it seems like a classic throw the baby out with the bathwater scenario. also they may be getting dragged down by a potential RAD bankruptcy. i would think that wag would benefit if rad does go belly up. as a trader this stock looks interesting to see if i can catch a bottom in it and maybe get a multiday rally out of it. the stock is down nearly 25% in a month and could catch a nice bounce. right now i have been looking around large cap stocks to see if there are some nice defensive bargains out there like a WAG. the pressure on stocks by hedge fund selling is pretty heavy right now and this presents potential buying opportunities so always keep your eyes open.
Futures down 175. What upside/ This is a global credit crisis. Hypo AG just got saved by the Germany today. I think their will be a reduction in interest rates globally in the next two days.
