Disappointed earnings this week, so the stock went South very fast. $47 -> under $40. I know Cramer doesn't like the stock, but not exactly sure why.

The company has no debt. Their PEG ratio is under 2. Any reason why I shouldn't buy $500 worth at $39.50 or so?

 

Is there a reason why you should?

 

Sales keeps increasing Calendar year-to-date sales were $40,357,306,000, an increase of 11.9 percent from $36,056,997,000 in 2006.

They keep opening new stores, already have 6,014 drugstores

Revenue is good and is expected to increase, the company has problems with expenses, something that a good management team can take care of.

Consumer will keep buying more and more drugs

The company still has no long-term debt

P/E ratio of 19.53

PEG ratio of 1.17

Is that enough reason? IMO, in the long-term Walgreens will do well. In the next couple of months the stock price may stay fairly flat, but I"m buying it at a bargain compared to last week.

 

Beware of value traps.



It's done nothing for 3 years but trade in a range from 40 to 50. YTD it's trading in a $4 range except for the big sell off. If people are jumping ship now are things getting better or worse? The best you can hope for is a 20% gain regardless of how long you hold the stock. I say it's dead money and wouldn't touch it. Some things are "cheap" for a reason.

 

I would be buying the stock hoping for a 20% rally the way it did between May 06 and Sept 06 knowing that if it doesn't rally, it will be a stable long-term stock.

My investment goal is to beat the major indexes. If I'm doing better than the indexes, then I'm doing good in my book.

 

I only signed up for the 5 minute argument. It was your question and it's your money so do what you want to do.

 

wag and that whole sector is a dog. there a so many other good stocks with much better long term growth. if i was seeking steady long term growth i would pick something with international exposure like nke. it outperforms wag on everychart with plenty of more room to go. nba is increasing their emphasis in china, which means lebron and yao will be doing a lot more chinese commercials!

i am glad i dumped rad for a loss, it was a cancer in the portfolio.

 

RAD was not one of my better calls.

 

Mine either ...... I got caught in the "big one" a few years back when they went belly-up.....NEVER again will I get caught like that....... dumb ...!!!