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Mr Aceves has been investing in the financial markets for over two decades and became involved in the financial services industry as a retail stockbroker in 2002 . His speciality was individual stocks, with an emphasis on superior service for his clients, which included being avaliable to speak... More
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  • Walgreens : Time To Buy? 0 comments
    Jun 22, 2010 8:01 PM | about stocks: WBA

    Like I wrote in one of my earlier posts, the market deals the cards and you are the player .

    It looks like the market has dealt us a nice card at this time .

    That "card" would be Walgreens Co. ( WAG) the largest drug store chain in the country .

    The stock was punished due to the higher costs related to the health care rules as well as the $623 billion buyout of Duane Reade .

    In addition, the decrease of lower sales of products related to the flu were a factor.

    There were a few good points including

    1) An increase in filled prescriptions
    2) An increase in Retail Pharmacy share .
    3) Increased exposure due to the Duane Reade purchase .

    This stock has had a fall from grace since touching its 52 week high back in the fall of 2009.

    However, these are the types of stocks that can make you  money . World class companies that are taken down by  bumps in the road .

    Unlike insanity,  looking for world class companies that have been crushed in the market is a process that one can do over and expect the same result.

    What I think happens is that once the stock gets pushed into the background , the big players step in and pick up shares  looking to pad their returns.

    This is a company, unlike Blockbuster (BBI) that is in good fiscal shape . This is only the largest drug store chain in the country .

    I think this stock goes back in the $ 35.00- 40.00 price range, and you make money  by playing this stock.

    There comes a time when you throw out things like free cash flow , candle charts, and other things and just rely on  common sense .

    Walgreens is one of those examples .

    Disclosure: This is for information only . You assume all liabilities by following any action written in this article .

    Disclosure: Long Walgreens
    Stocks: WBA
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