I am truly amazed at those individuals who think Rite Aid is going BK. The fact that we are seeing one of the largest early nationwide flu epidemics which is producing increased demand for cold and flu products in addition to flu shots, ought to have people thinking that next quarter is going to be incredible. Anyone doing 2 minutes of research can read that this flu outbreak will be considered one of the worst in the last decade. I see management moving this company in a positive direction, and this stock has incredible potential in the near future; so much so that a little DD will reveal BlueMountain Capital Management (CEO Andrew Feldstein) investing in RAD.
Those that have been stung by the debt and lack of movement on this stock are stuck in the mentality of bashing it and are SHORT sighted (no pun intended). This stock in IMHO has tremendous upside for the near future and is slated for what I believe will be a great turnaround. Don’t buy into the negative bashing of this stock and do your own research and due diligence. Others on this message board have offered positive insight into this stock. Again do your own DD and good luck to all those that are long on this stock.
You are correct, any poster with any knowledge of RAD would only predict BK if they really wanted it to happen. If that was going to happen, it would have been a few years back when they were in much worse shape. They have large debt, but solid institutions willing to invest in it. Also, other positives are high income/cash flow, high insider/institutional investors, a very positive chart, and a red hot market right now for some of their products.In looking at the chart, I could easily see a quick pop to the $2 to $3 range, as has happened several imes in recent years. As a former share holder off and on for many years, and having been out ot it for several years, I am glad I stumbled back on to it at $1.45. I expect 30 to 60 per cent gains over the next few months.
Agree 100%. Not only is the smart money counting on uptick in shares, but Driehaus Capital (Chicago) has also invested in RAD's long term debt. Moody's upgrade Thu, 1/17, should also quell any fears of bankruptcy. Combined with $25B in annual revenues, even small tweaks to the opex can result to tremendous increase in FCF. At 0.05x P/S compared to peers WAG and CVS (0.5x), RAD stock is 10x undervalued.
You are so right and the point you make here is certainly one very important aspect of my decision to comment on this board; as I rarely ever comment on stocks. However, I have been doing a tremendous amount of research on this stock, and the very fact that you have Andrew Feldstein (buying up stock) and Richard Driehaus (buying up it's debt) betting on the future of RAD tells me a lot about the potential here with this stock. These individuals are very very very bright investors and are not in the business of losing money to companies going bankrupt. RAD's future IMHO looks very good at the current time.
Good logical thoughts, but from a business perspective, if they continue the path of low increase in same store sales, how do they overcome 6.5 billion in debt. It seems that at 40 million a month in interest alone,they would have to run around 10% increase in sales. We know they have closed several stores, where does the money come from. If is my contention that as Walgreens wins back market share RAD is low man out.