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  • jimbo147 jimbo147 Jun 26, 2012 9:34 PM Flag

    Rite Aid stock much better buy than Walgreens


    Rite Aid (RAD) is only $1.32 per share and are on the verge of profitability. Their revenues are steadily increasing and check out their store renovations. They are certainly sleek. They are a much better bet than WAGS. While it is highly likely they will be between $2-3 per share in the next year, what is the chance of Walgreen's being $60?? I seriously recommend swapping WAG for RAD in both investment and shopping, you won't regret it.

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    • <<< Here's a novel idea, if you don't like your job and what it pays then find a new one or start your own business. >>>

      That's not what I understand. How about going on welfare, food stamps, and working off the books? That's the new American way, from what I hear.

    • Jimbo,

      I have a much higher opinion of you then recommending RAD over Wag, please you know almost 7 billion in debt with losing profits and poor mangment leadership makes this a dead dog. You must really have sold the bank on rad shares, sell rad today and buy best in the breed Wag. It will take a couple years but they will be worth it.

    • @Yank, regarding RAD listen to the other poster, he knows what he is talking about regarding RADs debt, most of it has been refinanced at fixed rates so the fact that interest rates will rise makes it all the better of a move for RAD to have refinanced. As far as the same store sales decreasing, it was mostly due to generics and one month does not make a trend, we need to see if this is a blip in their year long string of positive sss growth.

      As far as the FED, go read you message again because I am not the one who is misinformed. I do not doubt that Bernanke will be removed or that interest rates may rise, but you stated that the GOPv would dismantle the FED and that is about as misinformed as you can get. Also FYI, a politician saying they will do something if elected is not proof of about naive!!

    • Thanks for the response. Just a few comments. No need to take to the RAD board

      ****Much/most RAD debt has an escalator with changes to LIBOR ****

      Not true. 80% is at fixed rates (source 10-K).

      **** Either way, RAD just lost $378 M in its recently reported FY ****

      True, which is a loss of $0.43 per share. Current avg. analyst estimates are a loss of $0.15 per share for this FY and a loss of $0.08 for next FY.

      **** its current ratio was in a $2 B deficit ****

      Not true. RAD's current ratio is 1.7

      **** Tells me that MUCH borrowing lies in their future ****

      Not true. RAD has been free cash flow positive for the last 2 years and has provided guidance that it will be free cash flow positive for the current FY.

      **** and, further, that any upward pressure on interest rates could be a death knell for their survival. ****

      I can only comment on the foreseeable future. It's my understanding that the FED could start raising rates as early as late 2013 (Based upon a recent interview that I watched). Based upon the fact that RAD does currently have some variable rate debt, I expect that an increase in rates could have some impact on RAD, but nothing material.

    • Much/most RAD debt has an escalator with changes to LIBOR, as I recall, but feel free to correct me as I do not follow Rite Aid that closely since I closed out my position awhile back. Either way, RAD just lost $378 M in its recently reported FY, its current ratio was in a $2 B deficit and its operating income IN TOTAL only covered about 1/3 the present debt obligations. Tells me that MUCH borrowing lies in their future and, further, that any upward pressure on interest rates could be a death knell for their survival. Just for the record, I am NOT rooting against RAD.

      If you have further discussion on this, post your reply on the RAD board where the topic rightfully belongs. I will look for it over there.


    • Rite Aid a better investment than WAG? U gotta be kidding!! WAG is an investment, whereas Rite Aid is a speculation--and a poor one at that!

      • 1 Reply to El_Capybara
      • @ElCapybara, all speculative stocks are still investments, they just carry greater risk. Walgreens and RAD are both investments, but RAD is more speculative because it carries greater risk. Walgreens carries ris as well, but not as much. I have outlined above why I think that even though RAD has greater risk, it is still a good bet. Greater risk means even greater rewards if things turn out right. Just because Walgreens carries lower risk is not a guarantee it will do better. There is no risk free stock, you really need to learn these basics before you invest.

    • #$%$* If interest rates go up, Rite Aid dies. #$%$**

      Approx. 80% of RAD debt is at fixed rates of interest, which comes due in June 2016 and later.

    • jimbo, you can't be serious. RAD is a piece of crap. WAG will be at $50. in 2 years.

    • Continuing it's streak for several days now, RAD stock was up more than Wag's again today.