...when a stock breaks its uptrend trajectory line after a meteoric run, it is always time to consider staying aside from a full mean reversion process, especially when the stock decline is driven by adverse macro. I've seen many continue to make X-mas trees.
...here we have Walgreen Boots chart.
..first you see the completion of 1st Xmas tree to levels last seen in 2015, then a second to levels seen in 2013 after which we saw a rebound and most thought the bottom is in, then slam bang, the big accelerating decline took to levels before 2000 (1998).
Walgreens $WBA is having a collapse of epic proportion as it drops to lowest price since 1997
...is Walgreen Boots a bad stock? No. Isn't the overall market doing all time highs? Yes.
...and this is the result that saw Walgreen Boots plummeting -53% YTD ! And company trades at 4.2x earnings!
...cheap but so what? You could have bought it at the start of the year and scream CHEAP and got massacred.
Management said revenue was up 2.6% to $36.4 billion, and net income nearly tripled to $344 million, or $0.40 per share.
The big change was earnings guidance for the full year being cut from a range of $3.20 to $3.35 down to a range of $2.80 to $2.95 per share. This is the second time this year the company has cut guidance.
Bottom line: Macro narrative matters in the short to medium term. And given Where We're AT now, lets forget talking about long term. Survival first.
