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!
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.
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.
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 !
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 !
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".
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 !!!!!!!!!!!!!!
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 !
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.
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 !
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.
Somebody is buying up shares on a poor earnings report because they KNOW there will be another offer !
In a way it's a good move because the buck a share is a lock so the risk is low to lose money but a great chance to make a buck.
BK Court would never allow LF to file for protection with ASSETS 5 times the LIABILITIES. The balance sheet shows 260M vs 53m. The book value is over 2 bucks a share. LF has money to pay all their debts many times over. If LF is sold it will be more than a buck. This isn't over by a long shot.
Best Tablet for kids $139
Just the name LeapFrog is worth more than a buck a share.
And that would mean things are getting better. Maybe they are driving it down with panic selling just to buy it before the close.
That was not shorting...
I didn't say it was "shorting". I said there are less people short now than the prior month and that is a good indicator the stock is going up, because like it or not, "Shorts" are better investors because they have to be or they won't be around long.
LF wants this deal done.
You don't know that ! The Class B shares control the direction of the company not the common Class A shareholders and they have not made any comment or statement.
Something must be done for sure and a buyout seems to be the best way to go in which case the fair price to buy LeapFrog is the issue.
I believe with the current high volume on LF even after the big losses indicates SOMEONE is looking at LF to buy at a higher price than the current offer. Somebody is setting up a position to gain both control, position and profit. As long as no agreement with Vtech is made I don't think the new bidder will be Hostile but either way the current class A shareholders will profit. Next week we may get more news but I would need an eye on the volume for any big changes.
.... Patience will be rewarded and the odds that we get 9$ is looking pretty good!
Just where are you getting these "ODDS" ?
First the "odds" are RAD will never get a better deal than Walgreens offer so $9 is as good as it gets and that could happen I agree with that, but if it doesn't happen you are not going to get a penny of any fees Walgreen might pay but you will lose interest on dead money you invested in RAD and take the lost went the PPS drops after the deal fails to go thur.
RAD was $9.32 Aug 5, before the "Deal" and the "trend" has been down for earnings since then. If you didn't own RAD before Aug 5 you have been losing money and you could lose a lot more. RAD mgmt. wants the deal, the bonuses and then to wash their hands of the company. They get the BIG PAYOFF not you.
Bottom Line, there is a risk holding RAD and to me the reward is not by any means a SURE THING and it might not be worth it. It's for you to decide. If you sold today the max you could lose is abuck five, big deal.
Good Luck !
Reasons To Sell:
Rite Aid’s earnings plunged year over year on account of expenses related to the buyout of EnvisionRx
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
Zacks does not sell, buy, or hold any stock . Their purpose is only to serve their paying customers and not promote any stock for any company.
Reasons To Buy:
Rite Aid has been undertaking a number of strategies to drive growth such as the expansion of its pharmacy and clinical services and the reduction of costs.
Solid Earnings Trend: Rite Aid’s constant growth endeavors have been well on track, as is evident from the company’s robust earnings history. The company posted better-than-expected third-quarter fiscal 2016 earnings, surpassing the Zacks Consensus Estimate for six straight quarters, with an average beat of 56.2% over the trailing four quarters. Results benefitted from an improvement in comparable store sales (comps) and adjusted EBITDA, coupled with solid contributions from the newly formed Pharmacy Services Segment. The company's solid earnings history and impressive comps trend highlight its strong future prospects.
The reasons to Buy are base on the past performance which I admit was good but the reasons to sell is the down trend of the CURRENT performance which is below par.
Take your best shot it's your money !