Somebody thinks a BETTER OFFER is coming !
LF was flat most of the day losing 0.61 per share or 44M dollars but the vol was very high days after the buyout was filed. I think we will see a higher offer maybe hostile, or some lawsuits being filed which could set up a bidding war on the company.
just might grab some more because I still like buying low and selling high Less
If the deal falls apart this might be the high and the low may be 4 bucks.
You made some good points and nobody knows what will happen for sure but many people miss the big picture of the WHOLE DEAL and everything that can happen so it's good to talk about it. Good Luck !
I don't think the FTC is the main problem. RAD current numbers shows a down trend which may continue but the company uses the excuse of the merge for not projecting the guidance .
Cautious Outlook: Higher interest and amortization expense associated with the EnvisionRx buyout continues to weigh on Rite Aid. Evidently, though the company posted better-than-expected earnings in the third quarter, the bottom line plunged year over year, mainly on account of the aforementioned factor. Further, sales missed the Zacks Consensus Estimate despite improving year over year. Also, pharmacy comps growth lagged expectations. Consequently, apart from reiterating its conservative outlook for fiscal 2016, management stated its intention to hold back any guidance for fiscal 2017 due to its pending merger agreement with Walgreens. These factors make us somewhat cautious, creating a negative sentiment.
I think Walgreens will find a better deal.
Further you have no position and seem to have an axe to grind due to some emotional attachment to a previous loss.
YOU"RE THE ONE with the axe to GRIND . You're the one losing money. I sold at $8.75 years ago. Sorry to anybody that lost money on this stock except YOU !
My conversation with WBA employee's tell me they are way past these issues and will close sooner than later.
I am NOT into name calling so you can fill in the blank..........
AREYOU REALLY THAT ________________ !
Like the employee knows !!!!!!!!!!!!!!
where else can you find that yield if this goes through like it should....in less than a year..
I think you're on the wrong MB.
Last year 2/11 RAD was $8.08, today $7.76
You loss 32 cents for the year and that's a FACT, not a "if this goes through like it should".
Absolutely wrong!!!! The Class B stock has the same economic value as the Class A shares. You cannot offer more for type B than type A. Type B just controls the voting.
You're missing my point. You remind me of that movie "Back to School" !
You don't know WHAT DEALS are being made behind "Close Doors". As you said Class B stock has the same economic value as Class A shares BUT Class B has control of the deal and THE FLOW OF MONEY needed to make the deal one way or the other and that takes incentives like money to get someone to see things your way, if you know what I mean.
You will never know !
Seems like a bad deal to me.
Look for another BID.
Common Class A Shares don't control LF anyway. You have no say in the matter!
Contrast this with LeapFrog (NYSE: LF ) , which has a separate, untradable B class share (Note: There's no real naming convention for these things.) The traded A shares of LeapFrog comprise 22 million shares, or 39.4% of the economic interest of the company. Of the 33.9 million untraded B shares, Knowledge Universe, controlled by Michael Milken and Oracle (Nasdaq: ORCL ) CEO Larry Ellison, control 93%. The B shares get 10 votes for every vote of the A shares, so the B shares as a class control 93% of the total voting.
This renders the traded shares of LeapFrog almost completely powerless to make any decisions for the company in terms of executive compensation, mergers, acquisitions, poison pills, board construction, anything. They put their money up, but they get no say.
Unless the Class B holders make a deal that doesn't include the common A shareholders you guys are out in the cold with no say in the matter. While you get pennies the Class B holders get the REAL PAYOFF !
WBA has a silver bullet over the FTC........................... say no to the merger and we move the corporate office HQ overseas.............................................
Nice Try. The FTC can't control overseas operations but I would think that they still can call the shots in the USA.
Now that Rite Aid shareholders voted overwhelming to approve a $9-per-share takeover offer from Walgreens today, it's a done deal, right?
The answer is a big, maybe.
That's because the $17.2 billion deal is now in the hands of the Federal Trade Commission, which is already reviewing the proposed merger for antitrust issues.
The key is the combination of Walgreens' 8,200 stores, with locations in each state, and Rite Aid's 4,600 stores in 31 states.
The merger agreement gives room for the FTC to order Walgreens to spinoff up to 1,000 of the combined company's stores. But if the number of stores the FTC wants divested goes far beyond that threshold, the entire merger could be in trouble.
Rite Aid CEO John T. Standley said as much at the special shareholders meeting this morning to vote on the Walgreens' takeover. He said the FTC review is ongoing, and no one knows how it may turnout.
Clearly, both companies fully expect regulators to come back with an order that the combined company must shed hundreds of stores. But if that number exceeds 1,000, then Walgreens has the option to walk away under the merger agreement that Rite Aid approved today.
Rite Aid's troubled history of family drama, high debt and mismanagement
All along the way, this has been a story of high drama, even higher debt and highly questionable management, with East Pennsboro-based Rite Aid Corp. desperately holding on for dear life.
If WBA gets a lifeline to bail out they will take, if not they will pay the fine. Rumors are the BANKS are not ready to loan up to 17.2B for the a questionable merger anyway.
This stock isn't worth 7 bucks a share and as I always posted the vote would pass as a SURE THING. It's a gift and 97% know it but it will never happen mark my words.
Approximately 97% of the votes cast at today’s special meeting of stockholders voted in favor of the adoption of the Merger Agreement, which represented approximately 74% of Rite Aid’s total outstanding shares of common stock as of the Dec. 18, 2015 record date and constitutes a majority of the outstanding shares of Rite Aid common stock entitled to vote at the special meeting, as required to adopt the Merger Agreement under the General Corporation Law of the State of Delaware. A quorum of 74% of Rite Aid’s total outstanding shares of common stock as of the Dec. 18, 2015 record date voted at the special meeting.
Walgreen will wise up and NOBODY is going to outbid that 9 backs. If Walgreen backs out OR THE FTC STOPS the merge, shareholder will lose the 9 bucks PLUS the 7 and change which is the market value of the RAD with the RISK factor included. Shareholders do not get one penny of the fine Walgreen will pay, that goes to RAD mgmt. along with their BONUSES.
Bottom Line, WAY,WAY, to much risk for a gain of $1.12 that is going to take up to Jan. 2017 to get.
A REAL BAD DEAL ! Good Luck!
I should be looking at PEG not PE . A stock can have a high PE and if the PEG (Growth rate), is less than one but more than zero . The PEG is the complete picture. RAD has a PEG over 7 which means it's NOT UNDERVALUED.
DEFINITION of 'Price/Earnings To Growth - PEG Ratio'
Price/Earnings to Growth (PEG) is a stock's price-to-earnings ratio divided by the growth rate of its earnings for a specified time period. The PEG ratio is used to determine a stock's value while taking the company's earnings growth into account, and is considered to provide a more complete picture than the P/E ratio. While a low P/E ratio may make a stock look like a good buy, factoring in the company's growth rate to get the stock's PEG ratio can tell a different story. The lower the PEG ratio, the more the stock may be undervalued given its earnings performance. The calculation is as follows:
P/E ratio ÷ Annual EPS Growth
BREAKING DOWN 'Price/Earnings To Growth - PEG Ratio'
The PEG ratio that indicates an over or underpriced stock varies by industry and by company type, though a broad rule of thumb is that a PEG ratio below one is desirable. Also, the accuracy of the PEG ratio depends on the inputs used. Using historical growth rates, for example, may provide an inaccurate PEG ratio if future growth rates are expected to deviate from historical growth rates. To distinguish between calculation methods using future growth and historical growth, the terms "forward PEG" and "trailing PEG" are sometimes used.
Every small company I have had stock in that had to deal with an legal action resulted in no more than a footnote and had no effect on the stock. The bigger companies with lawsuits that made the general public news may have a small effect on the PPS but it went both ways sometimes, up and down.
I don't worry about it. When I worked for Eastman Kodak we were told we had over 1 lawsuit per day filed against us. We had a fleet of lawyers, they needed something to do.
Hoping and wishing is a bad investment strategy
Amen to that !
Some, not all, only want to hear one side of the story and those are VERY POOR investors. Those people only want to attack others with insults if they don't agree with them. They are not capable to argue a point of an argument so they take the easy way out .
3 years ago LF was 11 bucks a share and the product was always SOLD-OUT ! Back then Tablets were few and new to the world. You either had a $900 desk top or an $800 Lap-top, tablets almost STARTED with LF and they had the market all to themselves.
Once Wi-Fi spread the CHEAPER TABLETS had a big market and like the first computers the price got cheaper every month as the power got greater. Now for the price of a LF Tablet you had many choices that were equal to or cheaper than a LF product. I just got my first tablet last week since I was to be out of town for a week and I was shocked at the discounts after Xmas sales going on. You can pay as little as 79 bucks and you can get state of the art Hi Def , great storage and high speed for 129 bucks !
Just like there is too much oil, there's too many Tablets that are getting cheaper every day.
LF needs to go in another direction.
After RAD is acquired by Walgreen, they will also be controlled, owned and operated by Walgreen
And that's the point I'am making. If you have a Rite Aid store next to a Walgreen store after the merger, if it happens, you would have 2 Walgreen stores even if one store has a Rite Aid Sign on it.. That's not what the FTC will except.
RAD would needs to continue to operate as separate legal and operating subsidiary. This is how the acquisition of Duane Reade was handled.
Duane Reade is still Walgreen. It's controlled by Walgreen, the profits are Walgreen and on their investor page it is Walgreen stock posted. As far as the FTC, for their purpose, it's Walgreen.
Now when I worked for Eastman Kodak we spun off Eastman Chemicals and they had their own stock and were a total different company . as an employee we got a % of shares in the new company as well as our EK stock but they were totally different companies and Kodak did not profit from Eastman Chemicals.
Wholly owned subsidiary or folded completely under the Walgreen banner it would still be totally controlled by Walgreen's hence stores will be closed for competitive reasons.
You got it right ! The profits go to ONE company. There is only One stock, Walgreen.
3. No other bidders will come forward
That we can AGREE on.
RAD a subsidiary of WBA that could happen but why? What would be gained?
When the deal would close is up to the FTC. Walgreen has to find a buyer for many of the stores it owns and that takes time. When and if they have done what the FTC wants done the deal will close if both parties still want the deal done.
I still don't think the deal will ever be done but that's MY OPINION. It will be interesting to see the MARKET opinion after the vote which is a shoe in to pass for the merge. If the market reaction is to increase the spread between the PPS and the $9 or remain flat then the market is negative on the merge being done and the risk of losing the 9 bucks plus the current PPS is high and not a sure thing. If the PPS closes the gap to the target price ,9 bucks, then the deal will close. Good Luck !