3 Things You Need to Know if You Buy Walgreens Stock Today

Walgreens Boots Alliance's (WBA 0

Nevertheless, Landscape, given that it is one of the largest pharmacy retailers in the country (this bears monitoring)

But as an investment, well, it hasn't performed very well for a little while

And now it is heading into private hands

However, Here are three things you need to know before you buy Walgreens stock today (which is quite significant)

Walgreens has been struggling The most important thing to keep in mind when you look at Walgreens today is -- unfortunately-- its weak performance

It really isn't unique to Walgreens; the entire pharmacy retail space has been kind of tough

However, Walgreens compounded the blem by making big investments that didn't pan out as well as hoped, in this volatile climate

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For example, it got into the pharmacy benefit management only to realize that it wasn't going to be the growth engine management had hoped

It exited the space and pivoted into the emerging medical clinic niche (remarkable data), amid market uncertainty

However, That, too, hasn't gone according to plan

On the other hand, Conversely, Add in a bloated retail store base and the company is in need of a major overhaul

On the other hand, It has been working toward that goal, but big revamps can be hard to do for public companies

Nevertheless, For example, the decision to cut Walgreens' dividend to preserve cash was not well received by investors even though it will be helpful to the turnaround (which is quite significant)

Which brings the story to point number 2

Nevertheless, Walgreens is being taken private Sometimes it helps for a company to be in private hands during a turnaround effort (noteworthy indeed)

At the same time, That allows management to make bigger and bolder moves because it doesn't have to worry appeasing Wall Street

To that end, Walgreens has agreed to be bought by Sycamore Partners

However, 45 per in cash

That's all that investors here can expect to receive if they buy Walgreens

Additionally, That's the guaranteed upside limit

However, Right now the stock is trading at a few cents above the takeout figure (more on this in a second)

Conversely, There's two big takeaways, considering recent developments

Additionally, First, Walgreens is not a long term investment because it is exiting the public market, in this volatile climate

Second, the guaranteed return here is basically zero (or worse) at this point

Sure, Walgreens is an iconic, but it bably isn't the best investment choice for most

Conversely, There's a possible boost for investors The wrinkle in this story is that Walgreens is actively looking to sell its medical clinic

That sale will ly occur after it is taken private

And, as a sweetener for the deal, Sycamore Partners is giving holders a chit that entitles them to a portion of the ceeds from the sale of the clinic

The blem with this is that there's no time frame for the clinic sale (remarkable data)

Furthermore, And there's no guarantee on the price, either, in today's market environment

They could get money the day after the Walgreens takeover closes, or they could never get any money

What the re reveals is 's, at best, a special situation that only more aggressive investors will want to bother with

Meanwhile, It seems ly that the clinic has some value, but it is hard to assess what that value is or assign a time frame to the final payment, if there is one, in this volatile climate

The data indicates that Walgreens stock story is just over, for now Walgreens' run as a public company is to end and, when that happens, the story here is largely over for investors

In contrast, Yes, there's the potential sale of the clinic, but the outcome there is so uncertain that the chance to benefit will only appeal to more aggressive investors

Meanwhile, Over the long term, it is ly that Walgreens eventually finds its way back into the public

Hopefully, at that point, it will have revamped the and again be working from a position of strength.