With all of the talk about CVS going "healthy" (even though they sell plenty of unhealthy products and lifestyle products), Walgreen stands to pick up the slack from the lost sales of tobacco products. I'm sure local businesses are thrilled for the extra profits.
Walgreens is deeply oversold after they announced their major acquisition (but without doing a tax inversion to get the lower, international corporate tax rate). America will someday wake up and realize we need to be competitive.
Note how closely these stocks pair together but WAG was ahead of CVS going into summer and now it is playing "catch-up" to CVS which is going to its own new high.
WAG long - 62.48 (reit from earlier today when I put this out at 61.40+)
CVS short - 80.31
Also note on chart is wrong: WAG didn't get hit on poor earnings - rather - the acquisition announced didn't take advantage of "tax inversion".
Tim 4:18PM EST Sep 4, 2014
Walgreens is deeply oversold after they announced their major acquisition (but without doing a tax inversion to get the lower, international corporate tax rate). America will someday wake up and realize we need to be competitive.
Note how closely these stocks pair together but WAG was ahead of CVS going into summer and now it is playing "catch-up" to CVS which is going to its own new high.
WAG long - 62.48 (reit from earlier today when I put this out at 61.40+)
CVS short - 80.31
Also note on chart is wrong: WAG didn't get hit on poor earnings - rather - the acquisition announced didn't take advantage of "tax inversion".
Tim 4:18PM EST Sep 4, 2014
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