When Walgreens Boots Alliance (WBA) said that it would close up to 25% of its stores, selling pressure accelerated. Shares fell from around $16 last week to close recently at $11.57.
Short-sellers hold a 6.18% short float on WBA stock. Shares now pay a dividend of $1.45 for a 12.54% dividend yield. The unfavorable debt/equity ratio of 2.47 times suggests that Walgreens will cut or eliminate its dividend. The firm cannot renew its debt obligations at today’s interest rates. Additionally, it needs cash flow to fund the store closures.
Nike (NKE), after falling from around $95 to $76.04, may test the $60 - $70 level in the coming months. This is a price not seen since 2018. The stock still trades at a 20 times price-to-earnings ratio despite the lack of growth. Just as investors are doubtful about McDonald’s (MCD) trading at a premium, investors are cautious about Nike.
In Brazil, mining firm Vale (VALE) is in a holding pattern at $11.14. The stock yields 10.59%. This high yield suggests that markets are doubtful about Brazil’s currency stability and demand from China.
In the clean energy sector, ChargePoint (CHPT) has downside risks from here. The stock could break down from the $1.40 support. Short interest is 28.20%.
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