Macquarie downgrades Walgreen (WAG) to Neutral from Outperform after sizing up the company's...

Macquarie downgrades Walgreen (WAG) to Neutral from Outperform after sizing up the company's pricey acquisiton of Alliance Boots. Analysts with Macquarie see the buy as a head-scratcher that doesn't address soft U.S. traffic trends or pharmacy sales. A counterpoint comes from Stone Fox Capital with its take that yesterday's selloff was overdone on fears about anything related to Europe.

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Comments (3)
  • Uncle Pie
    , contributor
    Comments (4322) | Send Message
    there is a big article on this transaction in the Financial Times today. the sale, and the terms of the sale, were largely dictated by the leveraged buy out firms which control Alliance Boots. For some reason, this important connection is largely overlooked by the American media, but if you are interested in WAG shares, it is
    essential reading. the site,, is a pay site but if you "register" you can read a certain number of articles per month free of charge.


    no positions, but WAG is starting to look interesting.
    20 Jun 2012, 09:18 AM Reply Like
  • doc47
    , contributor
    Comments (1712) | Send Message
    I saw this, very interesting. It gives the deal a new dimension, but the continuing decline in month to month sales comparisons is still worrisome.
    Thanks for the info.
    20 Jun 2012, 12:29 PM Reply Like
  • Kurt Moeller, CFA
    , contributor
    Comments (4) | Send Message
    WAG has destroyed so much value with this crazily overpriced, strategically foolish deal that the stock has not yet begun to reflect the new reality. They will issue stock at a low price and likely commit to a deal worth the entire value of their current company.
    21 Jun 2012, 12:33 AM Reply Like
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