Shoppers is down close to 10% today on news that the Govt. of Ontario announced drug reforms. I don't follow SC but it is a popular holding and would be interested in members take on the news.
I also think Brad's take on it is very good. The stock price has not moved despite increased revenue growth (very strong growth at that), reflecting an expectation of this move.Thanks Brad. You seem to have a better handle on SC than many of the analysts who said they are shocked with the Ontario decision. I don't follow SC but I'm intrigued after this price drop.
It's not a screaming buy. The risk is now baked into the price but I don't see any huge margin of safety here. If it falls lower, it might be worth another look...dividend is already modest. I'd worry more about its being cut.
stk risks another whupping when new legislation passes in quebec, so anybody who feels driven to own pharmacy could probably benefit from waiting.
shoppers strong retail division will likely be able to source revenue from a broad base, not just prescr sales.
not bad for a defensive stock, but i'll pass.
I definitely think so. In the article I discussed that the lack of any dividend increase (at that time) and the most recent one (which wasn't on par with their previous dividend growth history) was directly associated with the anticipation of this development from the Ontario government (and likely others). The cost cutting initiatives the company announced again shouldn't be "new news" to investors if they'd studied the company in detail; they've been focusing on cost controls for over 24 months now.Do you think the new pharamacy rules will affect SC's ability to increase dividends in the future?
You can't blame Jurgen Schreiber for being upset with the Ontario government. But as a shareholder, you should be horrified about the way he's handling it.
Smart people never pick a fight with powerful politicians, and in provincial politics they don't come much more powerful than the minister of health. You can't win that scrap at the best of times and this is far from the best of times.