03-18-2015, 09:20 PM
Trimmed WBA in both our portfolios today. With a trailing P/E of 40 and, even if earnings hit estimates, the forward P/E is in the mid-20s, I think I can either better the dividend stream or buy some back if there's a significant drop in the meantime. It's just above my desired allocation in both portfolios. If they do make a big acquisition this year, it could wreak havoc with estimates as they digest it -- especially if they pick up Rite Aid. Of all the drug stores out there, including the regional ones around here, it appears Rite Aids are the worst managed outfit and would duplicate locations of just about every Walgreens in our area. That's a lot of store closings and broken leases.
I'll just sit in cash for a short while as I survey the landscape.
I'll just sit in cash for a short while as I survey the landscape.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan