John BurkeWalgreen Boots AllianceWBACOMMENTMay 10, 2017

They need to cut their dividend and present a plan.

It reports Thursday. The company is in disarray and can't see a way out of this mess. For instance, they have located two stocks a few blocks apart. in one city. They have no idea what they're doing.

Cracks appeared here when their CEO suddenly left. Also, are plagued by theft (shrinkage) like much of retail. Only the name brand is a positive.

Since 2014 - stock has not performed well.
Much prefers CVS.
Pharmacy sales impacted after Covid-19.
Recession will also be tough on business.
Dividend yield fairly safe.
Better names for growth and value.  

Down 20% in the last 6 months. Their problem is that they are the ultimate brick-and-mortar company at a time when Amazon is crushing their performance.

They report Tuesday. Very worried. Not sure if their buy of Summit Health can give their shares a boost. Have been a poor performer among retailers with decent balance sheets. He needs to hear them speak about theft. Buying stuff there is discouraging because it's under lock and key. It's easier to buy from Amazon.

It is not that bad but he prefers and owns CVS in the space.

Recent pullback good for long term investors.
Recessionary environment is good for business (cheaper products).
Strong assets with 8500 locations in USA.
Excellent brand with strong track record.

He prefers CVS which has more dynamic growth in many health businesses, though if you already own WBA you don't need to sell it. WBA has a strong balance and the dividend is safe. Better stocks in healthcare elsewhere.