Thu, May 21, 11:07 AM
- Rite Aid (RAD +1.5%) and Walgreens Boots Alliance (WBA +2.1%) trade higher after CVS Health snaps up Omnicare in a $12.7B deal.
- Analysts think the merger could be a positive factor for prescription pricing in the sector.
- Previously: Bloomberg: CVS in advanced talks to buy Omnicare (May 20)
- Previously: CVS Health strikes deal for Omincare (May 21)
Thu, May 21, 9:17 AM
- New additions to Goldman's hedge fund hotels - 50 stocks which most frequently appear among the largest ten holdings of hedge funds: AerCap (NYSE:AER), Assured Guaranty (NYSE:AGO), Baker Hughes (NYSE:BHI), Citizens Financial (NYSE:CFG), Colony Capital (NYSE:CLNY), Dresser-Rand (NYSE:DRC), Family Dollar (NYSE:FDO), Hospira (NYSE:HSP), Netflix (NASDAQ:NFLX), NXP Semi (NASDAQ:NXPI), Pharmacyclics (NASDAQ:PCYC), Visa (NYSE:V), and Walgreens (NASDAQ:WBA).
- Since 2001, the basket has outperformed the S&P 500 in 66% of quarters by an average of 73 basis points. YTD, however, it has underperformed by nine bps. Goldman notes the current basket overweights Consumer Discretionary (22%) and underweights Consumer Staples (2%).
- Looking at the full list, Actavis (NYSE:ACT) leads the way, with 77 funds naming the stock as a top 10 holding. Next up is Apple (NASDAQ:AAPL) with 69, then Facebook (NASDAQ:FB) at 42. For the entire list of 50, the average is 26 funds making a stock a top 10 holding.
- The rest in order: Valeant (NYSE:VRX), Microsoft (NASDAQ:MSFT), DirecTV (NASDAQ:DTV), Citigroup (NYSE:C), Time Warner (NYSE:TWC), Delta (NYSE:DAL), Cheneire (NYSEMKT:LNG), Yahoo (NASDAQ:YHOO), Liberty Global (NASDAQ:LBTYK), AIG, SunEdison (NYSE:SUNE), Air Products (NYSE:APD), Amazon (NASDAQ:AMZN), GM, BofA (NYSE:BAC), JPMorgan (NYSE:JPM), Macquarie Infrastructure (NYSE:MIC), American Airlines (NASDAQ:AAL), Charter Communications (NASDAQ:CHTR), Google (GOOG, GOOGL), Ally Financial (NYSE:ALLY), NorthStar Realty (NYSE:NRF), Priceline (NASDAQ:PCLN), eBay (NASDAQ:EBAY), MasterCard (NYSE:MA), Alibaba (NYSE:BABA), Micron (NASDAQ:MU), Williams (NYSE:WMB), Gilead (NASDAQ:GILD), Berkshire Hathaway (BRK.A, BRK.B), Dolar General (NYSE:DG), NorthStar Asset (NYSE:NSAM), Brookdale Senior (NYSE:BKD), DISH Network (NASDAQ:DISH).
- See also: Goldman updates list of hedge funds most-shorted stocks (May 21)
Wed, May 20, 11:48 AM| 1 Comment
Thu, Apr. 30, 4:08 PM
- According to Bloomberg, the list of firms that have indicated an interest in Omnicare (NYSE:OCR) include Express Scripts (NASDAQ:ESRX), CVS Health (NYSE:CVS), Walgreens Boots Alliance (NASDAQ:WBA) and McKesson (NYSE:MCK). Initial bids for the $8.5B market cap firm are due in May.
- Previously: Omnicare reportedly exploring sale; trading halted (April 22)
- Previously: Omnicare buyer would need to pay $95/share - UBS (April 23)
Thu, Apr. 23, 7:41 AM
- UBS estimates a buyer would have to pay $95 to acquire Omnicare (NYSE:OCR).
- Firm thinks Walgreens (NASDAQ:WBA) or Rite Aid (NYSE:RAD) could be interested, but are unlikely to pay up due to limited synergies.
- OCR increased management comp. in the event of a change in control, a possible indicator the company may be sold.
- Previously: Omnicare reportedly exploring sale; trading halted (Apr. 22)
Wed, Apr. 15, 2:10 PM| 5 Comments
Tue, Apr. 14, 10:24 AM
- A lawsuit filed last week by a pension fund holding a stake in Walgreen Boots Alliance (WBA -0.1%) contends the company misled investors over the benefits of the Walgreen-Boots Alliance merger.
- The case was filed against the merged Walgreen Co. and its former CFO and CEO.
- The company hasn't responded publicly to the allegations.
Thu, Apr. 9, 1:32 PM
- Walgreens Boots Alliance (WBA +3.9%) plans to close 200 stores in the U.S.
- The cuts are part of a previously-announced $500M cost-cutting plan.
- The same number of stores are expected to be opened in locations with higher profit potential.
- Previously: More on Walgreens Boots Alliance's FQ2
- Previously: Walgreens Boots beats by $0.23, misses on revenue
Thu, Apr. 9, 7:30 AM
- Walgreens Boots Alliance (NASDAQ:WBA) reports comparable-store sales rose 2.5% in FQ2.
- Pharmacy sales were up 10.1% on a 4.8% gain in prescription count for the quarter.
- Gross profit margin -292 bps to 25.90%.
- SG&A expenses +22.70% to $5.606B.
- Adjusted operating margin rate declined 26 bps to 6.92%.
- FY2015 Guidance: Adjusted EPS: $3.45 to $3.65; Ineterest expense: $140M to $150M; Tax rate: ~29%.
- FY2016 Guidance: Adjusted EPS: $4.25 to $4.60.
- WBA +1.15% premarket.
Thu, Apr. 9, 7:02 AM
Wed, Apr. 8, 5:30 PM
Wed, Apr. 8, 12:51 PM
Tue, Mar. 24, 10:25 AM
- A merger between Walgreens Boots Alliance (WBA -0.3%) and Rite Aid (RAD +1.3%) would lead to cost savings of between $400M and $650M, according to analysis from Credit Suisse.
- The investment firm also forecasts the merged drugstore operator would have to shed 3% of its stores to appease the FTC.
- RetailWire notes the new company would face some challenges with unions and higher borrowing costs.
- Rite Aid is up over 13% over the last month due in part to merger speculation.
- Previously: Walgreen Boots Alliance eyes U.S. drugstore acquisition (Mar. 12 2015)
- Previously: No quit in Walgreens-Rite Aid merger talk (Mar. 19 2015)
Thu, Mar. 19, 10:06 AM
- Shares of Rite Aid (RAD +3.8%) are higher again to extend on a rally fueled by Walgreens takeover rumors.
- Volume on Rite Aid over the last few sessions has been very elevated.
- Walgreen Boots Alliance (NASDAQ:WBA) is up over 6.6% for the week as investors don't scare off from the prospect of the company taking on the Rite Aid debt load.
- A big bet on Rite Aid is seen as a smarter play than buying up mom-and-pop chains.
Thu, Mar. 12, 2:33 PM
- Walgreen Boots Alliance (WBA +1.5%) is on the hunt for an acquisition in the U.S., according to the company's acting CEO
- "The next big one will probably be in the U.S. because it is such a big market," said Stefano Pessina at a retail conference.
- Shares of WBA are +9.8% since the Alliance Boots-Walgreen merger.
Fri, Mar. 6, 8:03 AM
- A light bulb has gone off with some large retail chains such as Wal-Mart (NYSE:WMT) and TJX Companies (NYSE:TJX) which have hiked low-level wages in order to improve employee retention rates.
- The math as compiled by Bloomberg is pretty compelling: The average retail sales worker makes $21,140 a year, while it costs $3,400 in training costs to replace them. At a high turnover rate it becomes more economical to lift wages.
- The development is interesting to economists pondering the future impact of Wal-Mart's (10% of all retail sales in the U.S.) new wage structure on U.S. unemployment rates.
- Related stocks: YUM, MCD, KR, TGT, SHLD, HD, WBA, LOW, GPS, JCP, BLMN.
WBA vs. ETF Alternatives
Walgreens Boots Alliance Inc operates drug-stores chain in the United States. It provides consumer goods and services, pharmacy, and health and wellness services through drug-stores, as well as mail, and by telephone and online.
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