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Rite Aid Corporation Message Board

  • truthman33 truthman33 Feb 28, 2013 10:42 PM Flag

    Seeking profits

    Ace,

    Need your knowledge decision time, would you go with Wag or Cvs, staying away from rad short much to volatile at this time,but if you feel its time to short, this little engine that couldn't love to hear that to.

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    • Maybe go with WAG get that dividend yield of 2.7% yeah, more than RAD, but I figure if you going after yield and not share price you may be better with other companies. KO currently at 2.89% and raises annually for almost forever., GE sitting at 3.21%, INTC right now at 4.18% and withing 4 - 5 months should announce a boost in that. MRK, 3.98%, OMI 3.1%. I could go on, but if you want some gains, I got RF, averaged up to low $6 cost, yield a measly .5%, but with stress test coming, figure a boost to $.10 - $.12 per share (some analysts expecting more, one stated $.06 per quarter, but I digress). In five years, when RAD is still around, and profits improving, and shares are what, 5 - 10 bucks, and announce maybe a dividend of maybe 10 cents per share, then not only do I have a capital gain, but I have a yield on cost of 11.8% or so. Beauty is in the eyes of the beholder, and bigger risks bring bigger rewards.

      If RF does increase dividend, that alone will cover my calculated risk on investing in RAD.

      Sentiment: thinking, might sell 1/4 position at $2.00. Stop loss moved up to $1.55.

    • truthman,
      I would go with WAG. I believe Boots Alliance will provide the catlyst to drive PPS. Their purchasing power will be off the charts. CVS moved into Brazil but a very small purchase. WAG will be the 800lb Gorilla just as it has been in the past. Not to mention, Customers love WAG and will come back. They are going all out to win them back.
      RAD has topped out and thats why I shorted at $1.76. They are just ending their fiscal 2013 and when they release those numbers in April that will be the closet they ever come to Profitability in a 10K. After that its down hill as the Deferred Tax Credit will be history........................ace

 
RAD
8.56+0.08(+0.94%)May 22 4:01 PMEDT