Friday, September 28, 2007

Investing Based on Demographics - SC

Shoppers Drug Mart - SC

“Provides pharmacy products and services through retail drug stores across Canada. The company licenses its drug stores to pharmacists or associates who operate a retail drug store at a specific location in Canada using the company's trademarks, Shoppers Drug Mart”

Dividend Yield: 1.2%
ROE: 16.53%
PE: 26X
Estimated 2007 PE: 24X
Estimated 2008 PE: 21X

THESIS: the thesis behind this company is the same as WAG and CVS: older people take more drugs and fill more prescriptions. SC should also benefit from seniors buying more beauty items in an effort to keep looking young as well as more impulse items simply because they’ll be in the store more. SC is also now has cosmetic consultants that are placed right by the entrance of many of their stores to target older women who want to stay looking good. I think SC is a great company but would not be a buyer at these valuations.


MG (moneygardener) said...

Your buying opportunity on Walgreens may have arrived this morning...

Thicken My Wallet said...

I tend to agree. There are so little large and mid cap health related stocks on the TSX that all the money gets pushed to a few select stocks and they tend to be over-bought.

MG (moneygardener) said...

as evidence with what happened to WAG. If SC ever misses earnings signicantly....look out...

Middle Class Millionaire said...

My internet connection is so slow on vacation that it’s hard for me to get the whole story but this is exactly why I’ve been hesitant to buy WAG and other great companies such as SC, TOC and ATD.B & MMM (before their big drops). These companies are priced to perfection and as a result just get slaughtered if they don't meet expectations.

I’ve been able to download a bit of the news but I think you might be right...probably a good time to buy. When I get back to the internet on Tues I’m going to take a real hard look at it.

Anonymous said...

As of today north confront is presently based in San Leandro, California near its sibling firm the JanSports who happens to be your worlds [URL=]north face apex bionic[/URL] backpack makers who happens to be the sole producer of small backpacks in america and to other contents such as Europe and Asia. The company was of VF Corporation which also owns recognized [URL=]north face apex bionic[/URL] like Lee, Wrangler along with Vans who are presently one of many well known manufacturers of good top quality of clothes.


Seems like a good process.

Anonymous said...

Fun and nutritious Paleo Toddler Dessert Recipe.
Let me tell you a quick story about the beauty of filling up on a paleo diet breakfast.
Other diets target only eating a particular food group or perhaps raw
foods only.

My web-site; Paleo diet And alcoholism

Anonymous said...

Aw, this was a very good post. Spending some time and actual effort to generate
a good article… but what can I say… I put things off a whole lot and never manage to get anything done.

Here is my web site :: acoustic guitar a chord