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Rite Aid Corporation Message Board

  • jimbo147 jimbo147 May 17, 2012 9:23 PM Flag

    My take on the Jean Coutu sale

    This is what I think is going on:

    Potential bidder: I want to buy RAD for $4 per share I wonder how to get shareholders to agree

    Potential bidder: I wonder if we could convince one of the big holders to announce a sale causing the stock price to fall

    Jean Coutu: No way would we sell, the stock is undervalued and the sales are increasing


    potential bidder: but if you do this causing shareholders to be more likely to accept our offer we will offer you a plush new job when we takeover

    Jean Coutu: OK, screw the shareholders of Jean Coutu, this way the reward is bigger for us.


    This is such something I am guessing went on because it just is not logical for them to have sold considering the performance of the company. Or for them to sell at 1.50 rather than when it was at $2.00

    Congrats Ace on your short, you are lucky that the stock is not acting logically in my opinion, but well done all the same.

    The lower this stock goes, the more likely it will be a takeover in my opinion. I think a takeover deal was already in the works and the fast surge in the stock price was striking fear in them and as I said above, I think this is what it is about but again, this is only speculation.

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    • The best thing that could happen for a potential investor would be for RAD to go BK and get rid of all the debt. Then, an investor could take over RAD for peanuts and not have to deal with the debt.

    • It is perfectly logical for Coutu to sell. Unbeknownst to traders, many financial heavyweights say the dollar is doomed. It has lost 37% of its value in the last decade and is about to lose the rest of it. If Coutu can get out of RAD now he can save his butt. My bet is that's his basic reason.

      A powerful financial advisor named Hussman says we're already going over the cliff. And an analyst featured on the Wall Street Journal website said yesterday that "current" indicators (as contrasted to "leading" indicators) show we are already in a recession, but no one yet realizes it. The exact same thing occurred in the previous five recessions—and also the 1929 depression. If Coutu could, he should sell his entire stake now. And it has nothing to do with RAD.

    • dillutional."only speculation"....no sh#t!Riding rad all the way down,huh jimbo?Of course Im only speculating.

    • rad longs...they will ride this to zero.

    • Please enough. We have all made good trades and bad trades, it happens. But when the obvious hits you in the face. This dog has been carried by smoke and mirrors for years, terrible managment,(most have failed at other companies),impossilbe debt to overcome and the small amount of sales increase is due to a real winner Walgreens not kissing someones bt. Sell the white knight is not coming only the grim ripper and thats the truth.

 
RAD
6.43-0.03(-0.46%)Aug 20 4:01 PMEDT

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