Walgreens stock was down at $10.50 today. When Sycamore's offer is $11.45 cash, the stock trading a dollar below that value is strange. Is the deal not happening?
12 replies (most recent on top)
Analysis by Montley Fool:
https://finance.yahoo.com/news/down-89-buy-dip-walgreens-140000063.html
The transaction is never done until it is closed. A loooong way to get there. PE firms like Sycamore are smart. They will pull out if the deal is no longer profitable.
Don't try to think too hard about this one. The buyers have already bought, the sellers are doing so because they need money. Its all short term strategies. Players can see past their di-k right now.
No money can made with Walgreens in the current conditions. Sycamore must be trying to get out of the deal.
90,000 American factories have closed since the 90s resulting in the loss of millions of high paying working class manufacturing jobs.
If deal is off. Wag. Stock 5 bucks or lower. Not sure why they didn’t see tariffs coming. Trump promised tariffs!
Maybe Sycamore is having second thoughts...
Regarding:"The stock is down 80% the last five years...." Not a Kool-Aid drinker. Don't own a single share of WBA stock. Can't stand Walgreens but it is curious when stockholders are basically guaranteed a price of $11.45 and the stock drops substantially below that. Does the change in the economic landscape (tariffs, stock market drop) change anything regarding the buyout?
Yeah this is interesting. The deal was for $11.45 a share. What happens if the share price is below that number when it comes time to finalize everything?
The stock is down 80% the last five years and some are now worrying about what the stock price is and what is going on? A little late in the game aren't you. Why would you even be looking at the stock. And if you have the stock.... haven't you lost enough, why would you still be in it? To make a quick profit? Good luck. I see there are still walgreens kool aid people out there. If you still have walgreens stock after all this time......I guess you like losing a lot of money from a corrupt, unethical company.
The SEC 8-K filing doesn't indicate the offering price of $11.45/share would change. If you believe the deal will happen then buy the stock for a quick profit. It will be taxed as a short term gain (20%).
Was wondering that as well. Maybe because market is down drastically? Even so, it would seem that WBA stock would hover around that $11.45 offer price. Also, isn't it about time for the earnings report? If the deal was off, I would expect Walgreens top drop like a rock.