Aug. 21, 2014, 11:43 AM
- Hedge funds are having a difficult time of it again this year, up 1% vs. a 7.5% gain for the S&P 500, according to Goldman Sachs, which crunched the numbers on 775 funds with $1.9T in AUM.
- Nevertheless, Goldman's list of 50 stocks which "matter most" to hedge funds has outperformed the S&P 500 on a quarterly basis 66% of the time since 2001. The stocks this quarter (posted in order of the number of funds in which a name is a top-10 holding):
- ACT, AAPL, FB, AGN, AAL, GM, TWC, AIG, MSFT, HTZ, CHTR, MU, WMB, LNG, C, DAL, HCA, APC, CBS, ALLY, GOOGL, APD, NRF, BAC, EBAY, LBTYK, PCLN, VRX, BIDU, DTV, DISH, DG, EQIX, MA, WAG, ARCP, GILD, LINTA, MON, FOXA, VC, AMZN, BRK.A, BRK.B, SUNE, CMCSA, JPM, MIC, CCI, HES, LAMR.
- A special call-out to Northstar Realty (NYSE:NRF), Visteon (NYSE:VC), SunEdison (NYSE:SUNE), Macquarie Infrastructure (NYSE:MIC), and Lamar Advertising (NASDAQ:LAMR) for making the list of hedge fund hotels despite their relatively tiny market caps.
Aug. 20, 2014, 1:12 PM
- Walgreen (WAG -0.2%) pushed out former CEO Wade Miquelon and other financial execs due to a $1.1B forecasting error, according to the WSJ.
- The group had to reduce a $8.5B projection on pharmacy unit savings by the figure last month.
- Higher costs on generic drugs accounted for a good portion of the forecasting misfire.
Aug. 11, 2014, 2:32 PM
- Drugstore stocks are on the move as investors continue to shift assets into consumer staples stocks.
- Walgreen (WAG +2%), CVS Caremark (CVS +0.8%), and Rite Aid (RAD +1.8%) are all higher on the day.
- The trio is also helping lift the Consumer Staples ETF (NYSEARCA:XLP) to a 1% gain to stay ahead of broad market averages.
Aug. 6, 2014, 2:23 PM
Aug. 6, 2014, 12:45 PM
Aug. 6, 2014, 9:19 AM
- Retail analyst Rahul Sharma thinks the market is overreacting to Walgreen (NYSE:WAG) pulling the tax inversion move out of its playbook.
- If there's a concern with the integration of Alliance Boots, Sharma thinks the slower revenue growth of the the European firm should be watched.
- The sudden dip in Walgreen has put shares back in line or below valuation on peers.
- WAG -15.8% premarket
- WAG tax inversion timeline
Aug. 6, 2014, 9:14 AM
Aug. 6, 2014, 7:03 AM
- Walgreen (NYSE:WAG) confirms it will buy the remaining 55% of Alliance Boots it doesn't own.
- The company rattled investors yesterday with a late announcement that it will remain domiciled in the U.S.
- The corporate headquarters of Walgreen Boots Alliance will be in the Chicago area, while Boots will be run from an operations center in the U.K.
- Walgreen says it will accelerate cost-reduction initiatives and sets a new EPS goal for FY16 of $4.25-$4.60.
- WAG -5.9% premarket
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
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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