Years of shareholder disappointment
US drugstore giant Walgreens is a chart moderate desaster! It is crashing -20% today after the earnings report missed expectations, the stock is down even -90% if we look at the last decade.
Stock price of currently $12 is the level we already saw end of last century in the 1990s. This is clearly nothing I would want to have in my portfolio. A classical falling knife. But with a record breaking duration. I don’t know any other big US stock that has suffered that much.
True, they are still paying a dividend but it was cut significantly in the last year and those payments don’t make up for the price wise loss.
Now the company is looking into closing unprofitable locations, this could affect up to 25% of their stores. Thats a four digit number, guys. Meaning a lot (!) and a major transformation they have to go through.
For me this is a value trap company that I wouldn’t invest a penny in. Too much of a negative track record, hard times on the consumer front and therefore too much risk. Or what do you think about Walgreens? Is there hope too?
