CVS Caremark Corporation (CVS), GNC Holdings Inc (GNC), Walgreen Company (WAG): Want Shares of a Legal Drug Dealer?

However, there are cracks in the armor. Most investors aren’t fans of overpaying, so paying five times GNC Holdings Inc (NYSE:GNC)’s book value isn’t really a good idea if you like a margin of safety. The company has also come under fire twice for charging its franchises “reset fees” during corporate facelifts and signage changes, as well as for selling merchandise at company stores for lower prices than franchises were allowed to sell for. This might actually be good for investors, even though franchises probably hated it. If GNC Holdings Inc (NYSE:GNC)’s share price dips substantially, you might still want to pick up some shares to get in on the steadily rising trend of ordering supplements online.

Abundant positive efforts

Walgreen Company (NYSE:WAG) is full of solid ideas. While Walgreen restaurants didn’t work out, the initiative to place handicapped workers in distribution centers and the green initiatives Walgreen Company (NYSE:WAG) has enacted have gone all gangbusters. Walgreen has also taken things old school by going back to the “corner drugstore” days, putting its entrances facing the highest-traffic streets adjoining the stores.

However, silver linings tend to come with dark clouds. Walgreen Company (NYSE:WAG) has agreed under a court order to not alter prescription dosages for its own expanded profitability, and the company has finally allowed people on its website to review both name brand and generic prescription medicines. Trading at more than 22 times its earnings as of this writing, I suggest you give Walgreen Company (NYSE:WAG) a pass.

The Foolish bottom line

Drug dealing, even the legal variety, is a dirty business. At this time, I can’t freely  and conscientiously recommend any of the above companies for standards of corporate accountability or overall cash efficacy, nor from a value perspective.

Chris Hodge has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Want Shares of a Legal Drug Dealer? originally appeared on Fool.com.

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