Walgreens Boots Alliance Inc (WBA) 옵션

Looks like someone sold 10+ million shares in 10 minutes before the close. Not a news event 

Was there news?

Down over a buck at the end of the day and after hours 

Target $17 now

This has got to pop up another 2-3 bucks

Fortunately for me I'm right place right time 

About 3 years late, but chopping the stores in high crime and politically corrupt areas, that the previous woke management refused to... will IMMEDIATELY improve numbers substantially!
12 San Francisco Walgreens Stores to Close in February

SAN FRANCISCO–Walgreens will close 12 stores in San Francisco between February 24 and 27, according to a company spokesperson.

“Our retail pharmacy business is central to our go-forward business strategy,” Marty Maloney, the company’s Media Relations Director, said in an email to The Epoch Times.

“However, increased regulatory and reimbursement pressures are weighing on our ability to cover the costs associated with rent, staffing, and supply needs.

“It is never an easy decision to close a store. We know that our stores are important to the communities that we serve, and therefore do everything possible to improve the store’s performance. When closures are necessary, like those here in San Francisco, we will work in partnership with community stakeholders to minimize customer disruptions.”

One store on the closing list, 5280 Geary Blvd., has been suffering 20 thefts per day. The employees have had to chain the shelves to mitigate the problem, at least in July 2023, as reported by The Epoch Times.

The retail drugstore chain company announced in October 2024 its plan to close about 1,200 stores in the next three years, including approximately 500 in fiscal year 2025, to gain immediate accretive to adjusted EPS (earnings per share) and more cash flow.

The San Francisco stores to be closed in late February are as follows:

Parkside – 1201 Taraval St.
Marina – 3201 Divisadero St.
Western Addition – 1363 Divisadero St.
South of Market – 825 Market St.
Outer Sunset – 1750 Noriega St.
Central Richmond – 5280 Geary Blvd.
Lower Nob Hill – 1524 Polk St.
Cathedral Hill – 1301 Franklin St.
Mission – 1189 Potrero Ave.
Downtown – 135 Powell St.
Ingleside – 1630 Ocean Ave.
Bayview – 5300 3rd St.

I'd say there are a lot more still to cover

Yup! Up almost 30% today!

No one makes money crying in their Cornflakes!

Clearly a lot of shorts got spanked here!

Market says it's worth the risk/reward. I'll take market price as the defacto measure. Nice payoff for seeing a trend that the new CEO is making.

"Adjusted Earnings" Translation: "Earnings Before Bad Stuff" I believe it was Charlie Munger who used to say that. But often the Bad Stuff is quite real.

Doesn't look great, but I still have my kids shares. I tend to ignore most adjusted numbers and go with GAAP. Fact is, closing stores is expensive.

" However, Walgreens posted a net loss of $265 million, contrary to analyst forecasts for a modest profit. On an adjusted basis, the company recorded net income of $440 million, or $0.51 per share, outpacing consensus estimates of $329.34 million, or $0.38 per share.

"Adjustments accounted for expenses related to store closures"

"WBA reported quarterly revenue of $39.46 billion, exceeding the $36.71 billion achieved in the same period last year and the $37.33 billion projected by analysts, according to Visible Alpha. However, Walgreens posted a net loss of $265 million, contrary to analyst forecasts for a modest profit. On an adjusted basis, the company recorded net income of $440 million, or $0.51 per share, outpacing consensus estimates of $329.34 million, or $0.38 per share.

Adjustments accounted for expenses related to store closures and fluctuations in investment valuations. Previously, Walgreens outlined plans to shut down 1,200 underperforming locations over the next three years, including 500 during the current fiscal year. The latest report did not specify how many closures occurred in the first quarter."

Shorts need to cover quick and fast from here on..
Indeed!

Quite a few realizing their mistake and slapping the ask this morning!

I'm being realistic short term. I do agree that this will be over $20 by summer if the buyout doesn't happen. EOY plausible to be $30..? I guess. I'd embrace that for sure, but realistically it's not going to invert to being a high P/E stock in a year

I think I am on the right side of my efforts 

The bad news has been more than factored in... the good news of their "post-woke" era is just starting to roll in!
WBA first quarter sales increased 7.5 percent from the year-ago quarter to $39.5 billion, an increase of 6.9 percent on a constant currency basis, reflecting sales growth across all business segments.
Even Uber-bear CNBC "There is some hope perhaps"...

Go Tim!

Why would they sell this company for 15 Usd per share. Have you understood the results and what it means. This stock will be at around 30 Usd by the end of this year. Closing stores is already known and they have probably built in the costs for those in their books. Its all baked in already. Shorts need to cover quick and fast from here on..

Hopefully their DEI folly taught them a lesson and they will again focus on their core business!

Looks like most companies have figured out that "Get woke, go broke" wasn't just a catchy phrase...

Closing 1200 Walgreens stores will cost a fortune in impairments. I worry too when I see terms like Adjusted earnings per share.

CEO says $1.40-$1.80 adj. EPS 2025.
Maybe I misunderstood that statement as something else..?

WBA isn't "a quarter away from turning a_profit." WBA is closing stores right and left even as I type thiis, so there will be sizable asset impairments for several years.

"Walgreens to close 1,200 unprofitable stores across US as part of 'turnaround'"

"Walgreens is closing approximately 1,200 stores across the United States as the pharmacy chain struggles with slumping consumer spending.

The closures will occur within the next three years, starting with 500 stores being shuttered in fiscal year 2025, Walgreens announced Tuesday in an earnings report. The company had confirmed plans in June to USA TODAY to close unprofitable stores but had not disclosed how many locations would be affected.

https://www.usatoday.com/story/money/retail/2024/10/15/walgreens-closing-stores-locations/75683122007/

Looking for an update to the possible buyout, I'll bet on $16/share in the next 12 months, nice gains coming for anyone looking for safe investment. And if that falls through then the company is a quarter away from turning a profit again so how do you lose? I have a small amount in this but that's the rules of investing, collecting that dive is also a small factor.

Dual key reversals on the chart, holding the April 10 calls here!

Probably $20 if the current CEO is effective 

You must be very unhappy with something you've done in the past or something someone else has done to you. You talk disrespectfully to a lot of people for your own enjoyment. Its a sign of poor character usually caused by an insecurity of some sort. Hopefully you get that figured out. If your ihub account is the thing that you prize the most you should maybe work on some other aspects of your life. 

When all else fails crap like this post is hauled out: "Looks like you have short position on this one."

Actually I don't own WBA or short it, my two kids own some. Jeesh, you penny players are dumb. Next we'll be hearing about evil market makers.

Who am I? You might read my IHUB bio.
https://investorshub.advfn.com/boards/profilea.aspx?user=42712

I made a lot of money on penny stocks when I was younger. Also lost a lot at times. They are fun. Invest a little make a lot. To risky for the money I play with now. WBA is a no problem 10-20% from here. Especially with the dividend. 

But looks like you have short position on this one. 

Based on the junk boards you've posted on over the years, I'd guess .0001 is more likely.

Who here thinks $30 is possible ? 

Lol he is one of yours. 😅

Nope. And, Cramer has good things to say about WBA's current CEO and has had him on Mad Money.

The opioid settlement was a travesty! And who benefitted from that ruling?

Cramer has always been a CVS pumper in my memory!

He typically just laments how much he used to enjoy shopping there, and notes that Walgreens has no choice and that it turns off customers. We don't have that problem in most parts of the country. Other tough problems for WBA have been the Opioid settlements (they didn't prescribe the drugs, and only filled the scripts) and the fact that Amazon may want to just run the brick-and-mortar drug stores out of business.

Thanks, and I agree with everything that you just said!

Seems so simple to just close underperforming stores. If they are all in high crime areas (pretty much)... so be it!

Want them to stay, don't rip 'em off!

As far as plexiglass, does Cramer have a better crime solution? Nope! So why does he feel justified to about bitch about it?

Two choices... Plexiglass or close the store!

I had CNBC on this am as always. He just said it is likely a long shot deal given certain factors, including the debt, and whether Sycamore could pull it off on terms that made sense for it long term. I would rather WBA work to recover and restore its financial strength, but we are long time holders. Given the strong dividend yield and the undervalued position of the shares, I do not want to see it go private at a very low share price.

You mentioned Jim Cramer earlier. He used to be a huge fan of Walgreens and a longtime customer, but he has been turned off by the fact that the Walgreens stores he uses, like many in the larger cities, have had to put any products of any value locked up in or behind thick plexiglass, etc. WBA has been hit hard by the flashmob looters that band together in mobs and hit retail stores in quick hit smash and grabs, stealing huge amounts of product and cleaning out much of entire stores, as happened in many instances in California and elsewhere, with little effort from law enforcement to effectively address the practice and problem.

I saw saw references to it. Is it online?

Faber is only as good as his sources... I have been watching him since he began in '93! I have seen him very wrong!

That is laughable nonsense. David Faber has an outstanding track record of spot on financial investigative journalism and has been recognized and acclaimed for his accuracy and expertise, and multi-part series on key stories uncovering behind the scenes happenings in the world of business, in particular when it comes to breaking news on M&A deals. Did you even watch the detailed analysis and report on the WB situation this am?

Faber reported only one side of the story. Like Cramer, he is manipulated by his sources.

Generally he does know what he is talking about except when his politics slant stories.

That is a reasonable projection, given that WBA's Book Value is right in that range. And, as I posted last week, Morningstar has a Fair Value estimate for WBA of $20 per share.

I'm right above a $10 average. My hopes are around $14-15 for a buy out amount if it happened. I believe we will be near $14 at some point next year if the sale doesn't go through. They have cleared up a lot of negative revenue streams as of lately 

David Faber, long time CNBC anchor and reporter has a long history of doing in-depth investigations into reported business transactions and stories. He indicated he first heard of this possibility of Sycamore Partners taking WBA private weeks ago and dug in and investigated it extensively, talking with sources close to the situation. Serious investors take David Faber seriously.

What a stupid comment!

"I'd bet donuts to dollars those dissing this are trapped short!" From watching your IHUB pumping,I doubt you can afford donuts.

Do not believe what they are saying on CNBC! I'd bet donuts to dollars those dissing this are trapped short!

What was, and perhaps still is, apparently being discussed is not really a buyout, but rather a private equity group taking WBA private. As pointed out in the story on CNBC this am, there may not be a strong likelihood of it happening, and if it does, it will be at a pitifully low share price relative to WBA's trading history over the past many years, e.g. $80's - $90's down to this disappointing share price level. Would be great for short term WBA holders who bought down under $10, but perhaps not so much for long term holders.

I hope you're right 

Not a chance. IF it sells it will be for $20+!

The insane weaponized legal rulings are done for, IMO.

Close the stores being robbed blind, establish localized nominal cost/free 1 hour delivery for $50 or more, and Wags will be a cash cow again!

So simple once the woke has been purged!

Might only sell for in the $11's

Indeed!

But, if it happens, it will be for well over $20... this is chump change!

Market like the idea of Wallgreens getting bought.