Use the charts to see the positive money flow with RAD
RAD chart looks very strong with very positive money flow.
Rite Aid (NYSE: RAD) is without question my favorite value investment in today’s market. In my book I explain how ideally, I want a company that is very cheap compared to sales with room to improve margins. The reason is because the market awards margins with high premiums. The problem is that if a company operates with total efficiency, it has to sacrifice those margins in order to grow, which is usually frowned upon by analysts and investors.
A company with horrible margins and massive revenue is usually very cheap relative to sales, and has to make very minor changes to improve margins. Such is the case with Rite Aid, as it posted its first profit in more than six years in 2012. The company’s operational improvements were only possible due to new generics that produce greater margins. Now, after years of disappointment, there are rumors that the company is on pace to produce a profit north of $500 million in 2013 (trading at a forward P/E of 6.0).
I bought Rite Aid at $1.23 and it has returned massive gains to my portfolio and 98.11 points to My CAPS. Despite these large gains, Rite Aid still trades at just 0.09 times sales! In other words, its five-seven times cheaper than its competitors Walgreens and CVS. In my opinion, with Rite Aid seeing such vast improvements, thanks to the patent cliff, I see the upside strong from this point forward. Hence I am not selling anytime soon.
Valuations do count Price to sales RAX 3.96 and RAD .09 A true turn around story RAD $ 2.90 after 5 yrs of not making money and the stock price being crushed to $ .93 in Dec 2012 But now profitable Back up with 2 quarters of profits and guiding higher. Most professional money managers Predict RAD $ 2.51 to triple in 2013 with a price target of 2013 Dec $ 3.20 and 2014 Dec $ 7.40 and 2015 Dec $11. This can all be confirmed with Point and figure Chart price target. Plus institutional money flow. In addition many upgrades and increased analyst coverage. once RAD passes $ 5 margin requirements open up and off to Fair value. Currently RAD sits 1/10 fair value to peers. WAG CVS dltr fdo five all north of $40 per share. Point and Figure chart confirms Price target $ 5.75. RAD daily volume normally in the top 20 leaders
So far RAD is working out . The volume confirms RAD should keep going. In the last 3 months RAD has added 2 additional analyst. Institutional holding have moved from 39% to 46%
You remind me of American Bulls I check that site and others each day. I promise you they had stay in cash Friday morning oh how funny Monday they said Buy and they posted they bought Friday at$ 2.56. Just once call it first then will see your real value. I still think RAD is a buy out target Till $ 7.50 then is might be tough.
RAD volume is 3 times normal Stock is up nicely