Stock going up on High volume for no reason when SSS are down every month only means one thing. Buy Out by another company. After running as many numbers as I can, I figure 4.00 to 4.25 a share will be the deal.
Seriously? Seriously? While I'm sure that RAD could continue to survive in its current form for at least 5 years, if not 15 years, there are no reasonable scenarios that indicate they would be prosperous and give a reasonable return to shareholders. Don't forget who owns most of the shares and what outcome suits them best. Coutu is not interested in holding onto a paper investment in RAD and watching it tread water into eternity.
The exception is if they sell off the west, and possibly the midwest, so that they can pay down debt and have enough free capital to bolster the east. If they do that, I could see the company throwing off a lot of cashflow and being a reasonably profitable venture. But, personally, I classify that scenario as just another version of buyout. It would require a major transaction with other retailer(s) and result in a very significant strategic redirection.