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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (73007)	6/28/2023 7:15:07 AM
From: Spekulatius	1 Recommendation Recommended By Lance Bredvold Read Replies (1) \| Respond to of 78957

The issue with drug stores are the shrinking profit margins. This is not a new problem either, but something that has been ongoing for a while. The drug retail business is structurally challenged and this is the reason why WBA and CVS expand into health care services and insurance (in the case of CVS). CVS is much further along in this transition than WBA but CVS acquisitions seem expensive and unlikely to create much value and that’s why reduced my position (but still hold some CVS shares ). I have been adding ELV on weakness and like their prospects much better. Health care insurance is a low margin business, but does not require much capital either, so ROIC is quite high (15-20%). A significant part of the balance sheet is just float.

To: Paul Senior who wrote (73007)	6/28/2023 2:09:47 PM
From: Harshu Vyas	Read Replies (2) \| Respond to of 78957

Boots also shutting down stores here in the UK. - bbc.com Sold my position - lower lows likely. Will likely repurchase when there's some support. The only reason I like WBA is because of the Boots factor - come to the UK and walk down any high street. On a large majority of them you'll find a Boots. - and consumers love them. My mum doesn't use any other pharma retailer - they're reputable and trusted by consumers. Problem is - it doesn't seem Walgreens has the same market power in the US. Best, Harshu Vyas