Aug. 5, 2014, 3:06 PM| 40 Comments
Aug. 4, 2014, 9:18 AM
Jul. 16, 2014, 7:30 PM
- The Obama administration is proposing a ban on “inversion deals,” retroactive to May 2014, in which U.S. companies buy foreign ones and move corporate headquarters abroad to escape U.S. tax laws.
- Inversion deals are more common among drug and manufacturing companies that earn much of their income overseas or have assets such as patents that are held offshore; shares of companies with pending deals who fell today on the proposal included Shire (NASDAQ:SHPG), AbbVie (NYSE:ABBV), Auxilium Pharma (NASDAQ:AUXL) and QLT (NASDAQ:QLTI).
- In an unprecedented move for a U.S. retailer, Walgreen (NYSE:WAG) also is weighing leaving U.S. shores, a move that could help lower its U.S. tax bill and save the company hundreds of millions of dollars per year.
- With the pace of inversions picking up, many in Washington are critical of the practice but they disagree on what to do about the trend: stop the deals cold via a one-off bill or pass a broad tax overhaul that would lower the 35% corporate tax rate.
Jul. 3, 2014, 8:23 AM
- Walgreen (WAG) reports June sales increased 8.9% Y/Y to $6.28B in June.
- Comparable-store sales in the front end of Walgreens stores rose 1.3% as a higher average basket size offset lower traffic.
- Comparable store pharmacy sales rose 11.3% during the month as a calendar shift contributed positively.
- WAG +0.4% premarket
Jun. 30, 2014, 10:16 AM
- Ohio Governor John Kasich has issued an emergency order in Ohio to allow select Rite Aid (RAD +0.8%) pharmacies to administer the MMR vaccine.
- The state of Ohio has had an outbreak of over 300 cases of measles and more than 400 reported incidents of mumps.
- What to watch: The entry of drugstore operators (WAG, CVS) into more essential healthcare services is a significant part of the growth story in the sector.
Jun. 25, 2014, 8:14 AM
- Following disappointing quarterly results reported yesterday, Walgreen (WAG) rates an upgrade to Buy from Jefferies, citing possible management actions like a tax inversion, recapitalization, and more cost cuts. The team boosts its price target to $87 from $69.
- Goldman maintains its Conviction Buy, but lowers the price target by $3 to $84.
- Shares +0.6% premarket
- Previously: Walgreen misses by $0.03, misses on revenue
Jun. 24, 2014, 9:05 AM
- Walgreen (WAG) felt pressure on pharmacy margins during FQ3 (earnings, details) with third-party reimbursements lower.
- Though the forecast for cost savings from the company's merger with Alliance Boots was pushed higher, visibility on the integration is still cloudy with key decisions still hanging in the balance. A potential tax inversion move tops the list.
- Walgreen pulled its 2016 guidance and put investors into a waiting period until later this summer for more clarity.
- WAG -2.2% premarket
Jun. 24, 2014, 7:44 AM
- Walgreen (WAG) reports total comparable-store sales rose 4.8% in FQ3.
- Customer traffic was down 0.7%, while the average basket size increased 2.9%.
- Comps for the front-end of the store rose 2.2% during the period.
- The company's gross margin rate fell 40 bps to 28.1%.
- Combined synergies for Walgreens and Alliance Boots were $367M for the first three months of the fiscal year.
- WAG -2.5% premarket
Jun. 24, 2014, 7:33 AM
Jun. 23, 2014, 5:30 PM
Jun. 18, 2014, 7:26 AM| 2 Comments
Jun. 11, 2014, 7:48 AM
- A new report forecasts Walgreen (WAG) could save $4B in federal taxes over the next five years by relocating its headquarters to Switzerland.
- Though some large shareholders are pushing for the company to make the tax inversion move, the action could also cause a major public relations backlash with Walgreen bringing in a quarter of its revenue from Medicare and Medicaid.
- A decision on the issue is expected by the end of the summer.
Jun. 4, 2014, 8:13 AM
- Walgreen (WAG) reports sales increased 6% Y/Y to $6.57B in May.
- Comparable-store sales were 4.4% higher during the month, led by a 5.5% gain in the prescription sales comp.
- Customer traffic in comparable stores fell 0.5% for the period, while the average basket size increased by 3.1%.
- WAG +0.3%
May. 19, 2014, 12:05 PM
- Walgreen (WAG +2.2%) moves higher after weekend reports indicate the company is considering buying Alliance Boots outright.
- Hedge funds Och Ziff, Jana Partners, and Corvex have been pressing the company to maximize the Alliance Boots investment.
- More in Walgreen-Alliance Boots: Synergies piling up, inversion plan on the table
May. 18, 2014, 4:07 AM
- Walgreen (WAG) is thinking about buying the 55% in European peer Alliance Boots it doesn't own, The Sunday Times reports.
- Taking inspiration from Pfizer in its pursuit of AstraZeneca, Walgreen would then move its domicile to the U.K. or Switzerland in order to lower its tax rate and save billions of dollars a year.
- Walgreen purchased 45% of Boots in 2012 in a cash-and-stock deal worth $6.7B and has a three-year option to acquire the rest.
May. 15, 2014, 9:22 AM
- Alliance Boots says its collaboration with Walgreen (WAG) has led to synergies piling up ahead of targets.
- Walgreen has a six-month window starting in 2015 to exercise an option to buy the rest of Alliance Boots.
- Related: Walgreen inversion - these Alliance Boots are made for walkin'
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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