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Walgreens : Time To Buy?

|Includes: Walgreens Boots Alliance, Inc. (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