Walgreens goes private, Kohli bows out, and small-cap scams stay evergreen
Permanent Losses (and Other Uncomfortable Truths)
A Few Quickish Updates This Week
Walmart Boots Alliance? No, Walgreens. But Still Boots.
Remember when I wrote about Special Situations trades? Yeah, me neither. Life’s been busy, so that bucket hasn’t seen much action lately. But one dusty position I did hold was in Walgreens Boots Alliance (WBA), via options.
Once upon a time, WBA strutted around in the glamorous $40s and $50s. Then, gravity happened. The stock crashed to under $10. Despite ~$12 billion in shareholder equity still on the books and losses that were—let’s say—less terrible than before, management said, “You know what? Let’s sell ourselves to a private equity firm for $11.45 per share in cash,” plus some earn-out candy that might add up to another $3/share… if all the stars align.
Translation: they’re selling the house at a discount, borrowing some more money in the process, and throwing in a scratch-and-win card.
Sure, the deal was a 29% premium over the then-price, but for long-term investors? It’s a parting gift wrapped in permanent capital loss.
As for me—my options? Expiring gloriously worthless.
Why am I bringing this up two months after the fact?
Because King Kohli announced his retirement, and somehow, it all clicked.
Kohli’s fans, including me, had unwavering faith. Averages of 19.33, 28.21, 26.50, 55.91 and 24.52 over the last five years were waved off as temporary blips. A slump. The king would rise again, we were told. But the turnaround never came. The result? A permanent loss of opportunity. Like holding on to WBA, hoping for the magic to return.
Meanwhile, the team could’ve groomed perhaps two new players in that time. But hey, hindsight’s 20/20.
(If you're a Kohli fan, take a breath. These are just stats, not an attack on your religion. And yes, he was truly a king of batting, in all 3 formats!)
Stella Jones: A Timbered Recovery?
This old-timer in my portfolio has had a rough 2024. But the recent quarterly results offer a sliver of hope. CAD 1.67 earnings per share vs. CAD 1.36 last year. Some of that came from a one-off insurance settlement (thanks, Acts of God), so let’s not uncork the champagne yet.
Still, the stock's picked up a bit, and I haven’t touched my position in a while—nor do I plan to. The long-term trend still looks solid to me.
Will it bounce back stronger? Maybe. For now, we live to fight another day.
Can Stocks Be Manipulated?
Short answer: yes.
Slightly longer answer: yes, and they always have been. Before 1934, you could practically run a manipulation school with zero consequences. Then the SEC Act showed up. But it wasn’t until the '70s that real enforcement kicked in.
Even today, pump-and-dump schemes are thriving—just with snazzier PDFs and WhatsApp forwards. A reader recently flagged a shady “100-day free trial” stock tipster promising outsized gains for a future profit share.
The tips started with large-cap names (safely boring), then veered into a sketchy small-cap that could turn nano-cap if someone sneezed at the wrong time. I saw the trades before and after the “tip”—and let’s just say the price action had manipulation written all over it.
So why bring this up?
Because if someone offers you “insider-style tips” and a path to easy money—run. Don’t even touch it with a disinfected barge pole. When (not if) the SEC gets involved, you won’t be the genius who saw it coming. You’ll be Exhibit C.
Profit is nice. Prison is not. Say no. I will.
Me on Video: A Face for Podcasts
In shameless self-promotion news, I was recently interviewed on the Behind The Glass Door podcast by my friend and IIT co-alum, Sachin Kasture. It was a fun chat and, surprisingly, I don’t sound completely unhinged.
If you’ve been dying to see me in full AV glory, this is your moment.
Stay skeptical, stay sharp, and don’t fall for stock tips from WhatsApp prophets. On that lightweight note, Happy Investing!
Disclaimer: I am not your financial advisor and bear no fiduciary responsibility. This post is only for educational and entertainment purposes. Do your own due diligence before investing in any securities.