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TAKE 120: Walgreen's has the cure for big returns

Monday, June 24, 2013 - 02:33

Jun 24 - Alpine Funds' Bryan Keane has just two minutes to defend his case for preferring Walgreen's to CVS and says the drug store has better earnings growth and potential to increase its dividend.

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Needed drug -- -- go to Walgreens or -- CBS in -- take what's funny. Brian Keane has just -- to tell me which pharmacy company. Has the cure for an ailing stock portfolio. So Bryant which company do you prefer and why. Well I'm we prefer Walgreens and the reason is we believe there's earnings of side throughout the year. 2013. We see that stock has its stock price doubled since it yes so this summer that expectation faked into the stock price and only someone that is that the earlier agreement this year AmerisourceBergen we believe can provide further upside -- Distillate stocks. And earnings growth is coming from that -- them off. Well there is more one Big Easy sales comparisons from a year ago at an agreement Express Scripts in the back in 2012. Also they're going to get synergies from the present there. That pharmacy benefits compensation -- That's partly AmerisourceBergen. Freeman there because some distribution that they didn't have before. And you're right CBS's the good stuff the last two years because of that. Nonprescription sales posting better right now. Paulson makes -- and I think it varies month to month basis port of port. Wolf we're trying to drive traffic and operated the prescriptions. Is going to be an issue with more generic prescription. What was -- what was happening with generics is their search the top one bit right but it does benefit -- because higher margin products. Both of these companies are trading forward PP's in the high teens might. It's not too far enough not to -- and we'd look at 2014 earnings which -- trading at about thirteen times what's the biggest risk for. Biggest risk for watering his execution. If -- execute on the synergies forceful. The joint venture they signed earlier this year -- positioned as well as getting people back to the stores and policing and the dividend. The defense I think it's a very cashed in -- business we think of long term going to be increased payouts. And where's the stock demonstrated in the year. Hopefully higher than just act right thanks for joining me this makes it quite funny ironic shop there this is Reuters.

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TAKE 120: Walgreen's has the cure for big returns

Monday, June 24, 2013 - 02:33