Are you insane? You are shorting a stock at the beginning of a multi-year turnaround, in an industry exploding in growth, with an exploding cutomer base, and exploding margins. To top it all off the stock is on the precipice of a MAJOR breakout past $2. The stock is consolidating around $1.90 rather than blowing past $2 like last year and quickly reversing. I predict when the stock passes $2 this time it will stay there and never look back. I bet you wish you'd covered when it was $1.68 and then when it was $1.70 before exploding upward at at the EOD. Don't make the same mistake twice because you won't get another chance. after this bout of consolidation it will be rising far more than 20 cents. There is nothing but good news coming starting next Thursday April 4 with March sales and followed on April 11 with Q4 and full year fiscal '13 as well the forecast for fiscal'14. I expect a minimum of $0.15 forecast for fiscal'14 unless management does some major sandbagging. In reality I think we see $0.20 to $0.30 earnings fo fiscal'14.
Worse case the market tanks and RAD falls to $1.50 - $1.70
Best case the market starts giving RAD a fair valuation and we get anywhere from $4-$7
The market rewards consistency and 2 consecutive profitable quarters in a row (exlusing one time refinancing charge) will make the stock move in April dwarf the move in December.
Again I ask why short the stock?, the reward just isn't there but the risk (for shorts) is huge.
I do taxes, most of my senior customers, baby boomers , are forking out Mucho dinero for drugs, 10,000 new retires each day...more customer for Rad....shorts will cover @ 2 and @3 and @4 with much pain..
The 50.00 was due to speculation over the expansion that Junior tried but screwed up.
More realistcially is to return to its normal value of mid 20's a share.
oh 50 a share was where sapcy was buying and got burned thats why he keeps bashing, he got burned speculating and thinks its personal.
The shares will get a premium for consistency that they don't currently get from the market (and wags and cvs do). I see the coming movement in share price in the next month as including partly a movement that should already have happened but that the market took a "wait and see 2 quarters" approach. I really do see shares jumping $0.50, $0.80, or even $1 + within a few weeks of earnings.
No concern needed for the sales release the March sales will be released on April 4 as scheduled. Monthly sales are usually around about the last or first Thursday of a month (usually). You can find the upcoming dates on the Rite Aid website.