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1 Reason It May Almost Be Time to Sell Walgreen's Stock

By Chuck Saletta - Mar 17, 2014 at 8:10PM

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Walgreen's stock price may simply be getting a bit ahead of its operating fundamentals.

Walgreen ( WBA -0.25% ) is a selection for the real-money Inflation-Protected Income Growth portfolio. In this brief video, portfolio manager Chuck Saletta offers up the one reason he's considering selling the stock despite its substantial gain since he bought those shares a little more than a year ago.

Walgreen's meteoric stock-price increase means the company has rocketed past a reasonable fair-value estimate, though its balance sheet, dividends, and prospects remain strong. As a result, if its stock price passes $72 per share before Walgreen's next earnings announcement, he'll consider selling. Otherwise, he plans to hold through the earnings announcement and re-evaluate to see whether it drives changes to that fair-value estimate.

To follow the iPIG portfolio as buy and sell decisions are made, watch Chuck's article feed by clicking here. To join The Motley Fool's free discussion board dedicated to the iPIG portfolio, simply click here.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Walgreens Boots Alliance, Inc. Stock Quote
Walgreens Boots Alliance, Inc.
WBA
$48.18 (-0.25%) $0.12

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