Lackluster results from a business can have a positive result, depending on how independent-minded companies are or whether they are looking for a hand up. If things aren’t so hot, an activist investor can come in and turn up the thermostat. That seems to be what is happening at Walgreen (WAG), which just missed earnings estimates and reported slower same store sales growth at a 3.7% increase compared to a Wall Street’s 3.8% estimate. The stock rose on rumors that activist investor Carl Icahn might have taken a stake in the company. Berry Rosenstein, founder of Jana Partners, joined WAG’s board on Tuesday, and Rosenstein will have some say on the appointment of additional board members–well you can’t get that much more activist than that.
Jim Cramer seemed happy (for Walgreen) about the news, and said it was a “triumph of activism” (in terms of investing).
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