Cramer Sticks with Walgreen's Pick

Walgreen Company (NYSE: WAG) shares dropped sharply despite a positive recommendation by CNBC's Jim Cramer on his Mad Money Lightning Round. The hedge fund manager turned television star is still bullish on the stock despite the fact that it continues to fall as a result of its failed Long Drugs (NYSE: LDG) bid and the departure of its chief executive. Combined, these events led to Walgreen's shares dropping to a ten year low.

Other investment professionals aren't quite as confident. Moody's Investors Service downgraded Walgreen's senior unsecured debt rating to A2, saying the likelihood has risen that the drugstore operator may want to look for more acquisitions after its failed bid to buy rival Longs Drug Stores. This turned out to be warranted after Walgreen's acquired McKesson's specialty pharma unit. The agency also cited the sudden retirement of the CEO on Firday only two days after Walgreen's abandoned its attempt to buy Long's Drugs.

Walgreen Company (Walgreen) operates retail drugstore chains that are engaged in the retail sale of prescription and non-prescription drugs, and general merchandise. General merchandise includes, among other things, beauty care, personal care, household items, candy, photofinishing, greeting cards, seasonal items and convenience foods. Customers can have prescriptions filled at the drugstore counter, as well as through the mail, by telephone and via the Internet.

Walgreen's shares dropped $0.80, or 3.29%, to $23.55 per share in mid-day trading.