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  • Short AmerisourceBergen: There's No Easy Cure For What Ails This Drug Wholesaler [View article]
    I did suggest 6-9 months for a catalyst. Ask me then.
    Jul 3 03:50 PM | Likes Like |Link to Comment
  • Short AmerisourceBergen: There's No Easy Cure For What Ails This Drug Wholesaler [View article]
    I thought that might be a point to consider, but note that CAH had both of ABC's current largest customers for a few years prior and even CAH kept it's Allowance for Doubtful accounts at around 2.5%. I don't believe ABC can make such a judgment in only a few months of experience with its two new customer accounts.
    Apr 7 01:29 AM | Likes Like |Link to Comment
  • Short AmerisourceBergen: There's No Easy Cure For What Ails This Drug Wholesaler [View article]
    I take your point Christopher, but I think the sum total of their actions suggest that this may be intentional. The fact that they are applying gains to COGS, and Allowance for Doubtful Accounts is down dramatically AND that the calculation for FY 2014 EPS will be adjusted to provide for an uplift in reported earnings suggests to me that this is a management that is looking for ways to make its numbers.
    Mar 23 08:07 PM | Likes Like |Link to Comment
  • Short AmerisourceBergen: There's No Easy Cure For What Ails This Drug Wholesaler [View article]
    I agree there will be more of a boost to generics. The Big Three wholesalers will get the revenue boost. However, to have the benefit flow to the bottom line will require favorable terms with partners and a good grip on costs. I don't think ABC has either.
    Mar 21 04:11 PM | Likes Like |Link to Comment
  • Short AmerisourceBergen: There's No Easy Cure For What Ails This Drug Wholesaler [View article]
    Also note that on December 12, 2013, management announced in its 8-K that it would change its calculation of 2014 EPS to an Adjusted EPS calculation. A change that will allow it to improve its eps via accounting yet again. See notes from 8-K below.

    "Adjusted earnings per share from continuing operations exclude: LIFO charges and credits; warrant expense; acquisition-related expenses and intangibles amortization; special one-time employee severance, litigation, and other expenses; and gains from antitrust litigation settlements. In addition, the Registrant will calculate its adjusted earnings per share for each period using a diluted weighted average share count which will exclude the accounting dilution resulting from the impact of the unexercised equity warrants."
    Mar 21 02:56 PM | 1 Like Like |Link to Comment
  • Short AmerisourceBergen: There's No Easy Cure For What Ails This Drug Wholesaler [View article]
    I think the generics business will ramp up, but the COGS figures have been increasing every quarter for the past 4 quarters. Also, the most recent quarter had 3 full-month's worth of Walgreens business accounted for in it, so using the most recent quarter figures has significant validity. I do believe the generics business will ramp up and impact revenues, but the it will not add to the operating margin. If anything WAG will add to opex as ABC needs to build out distribution capabilities.
    Mar 21 02:28 PM | Likes Like |Link to Comment
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