Walgreens Boots Alliance Just Made $992 Million. Here's Why That's Not Good News.
Walgreens Boots Alliance (NASDAQ: WBA) just created a windfall of $992 million for itself, and there might be other similar paydays on the horizon. But don't place your buy order for the stock just yet. Sometimes, making easy cash can have consequences. And this is arguably one of those times. Here's why.
The way that businesses make money matters. There's not much point in buying shares of an operation that's selling off its productive assets to keep the lights on, because in the future, especially in the long term, it probably won't be able to generate as much revenue or earnings as it did in the past.
Walgreens isn't quite at the point of scrapping its core capabilities for short-term relief from its financial problems, but it seems to be getting closer over time.
Source Fool.com
