I'm new to this message board. I bought a few thousand shares at around 3.75 I purchased for the long run. However, if WBA is successful, I'll make $$$ quickly, if the deal falls thru I'll make $$$ later. RAD will recover from these levels without WBA.
I propose some NEW RULES for this board: 1. Begin each post with I'm LONG or I'm SHORT so that it is easy to identify your bias 2. When replying to a reaction begin with @Poster if you reply is aimed a particular comment 3. Keep your comments about the content of the reaction (no personal attacks) 4. If you are refuting a previous reaction, state your logic or reasons and facts as you believe them rather than just saying "you're wrong"
This is just common courtesy. The presumption is that we are all interested in our financial futures. Let's start from a place of mutual respect.
FTC likes to allow a 30 day public comment period. Valspar and Sherwin Williams have one that begins today. This is a formality. To allow the same, the FTC will want to issue a consent by June 7.
I've been in and out of this for a while. Lowest price I bought was $1.16. Highest was above $8. I am long and strongly believe RAD is better off on their own (with new management team).
Here's why I think FTC should approve the deal. Original price was at $9.0, to satisfy FTC concerns to divest some stores, price lowered to $6.50. now share price is at $3.65. RAD profit margin is very low and need consolidation to cut some redundant cost and capital infusion to refresh products and improve services. It should be win win for all parties. Killing this deal is very antibusiness and unfair to investors. There are many strong competitors in the retail drug business. If the deal goes through, now you have CVS Walgreen Fred's Amazon Walmart Target Costco Alberson and many other independent drug stores. Amazon and Walmart are also ramping up their online business will put further competition into the industry along with changing technologies. With online price comparison, there are lots of information for consumers to make smart choices. In retail, you cannot charge high. If you do, consumers will not come back next time. With all these competition, I think antitrust issue should not be a problem. The market can always balance itself
RAD has: $2.8B of inventory + $2.2B of property, plant and equipment + .2B of other assets = $5.2B Less ....... $7.2B of debt = and TaTaaaaa ......................................................................( $2B ) of real value.
At least someone is making money here. 2016 executive compensation:
I guess Walgreen's calculation is that when they get rid of the dead weight, profitability would increase by over $50M annually.
For those who are following & keeping this particular score card, Diane Alter at CTFN looks to have correctly called the Sherwin Williams/Valspar FTC approval of deal two days prior which was officially announced today by FTC. If she is also correct about the FTC 1-1 split vote on WBA/RAD, then deal should go through. Not likely that Dem commissioner McSweeney will bring GOP acting chair Ohlhausen to her way of thinking. More likely the other way around.
$11.5B of "assets" includes $2.5B of intangibles and goodwill = $9B of real assets LESS $11B of liabilities = ( $2B ) in the hole.
Got it, Samantha?
For the benefit of all RAD investors I've decide to play golf today.
Rite Aid was trading over $6.00 per share on average about 3 years prior to the Walgreens' offer in October 2015... My average price is $3.90 per share...
The risk - hence the current stock price: " If the Merger or Sale is not completed for any reason, we will have incurred substantial expenses. We have incurred substantial legal, accounting and financial advisory fees that are payable by us whether or not the Merger or Sale is completed, and our management has devoted considerable time and effort in connection with the pending Merger and Sale. If the Merger Agreement is terminated under certain limited circumstances, the Merger Agreement may require us to pay WBA a termination fee of $325 million. In addition, the trading price of our common stock could be adversely affected to the extent that the current price reflects an assumption that the Merger and the Sale will be completed. Additionally, there may be changes to our strategy in the event that the Merger or Sale do not close, which may include delaying or reducing capital or other expenditures, selling assets or other operations, closing underperforming stores, attempting to restructure or refinance our debt, seeking additional capital or incurring other costs associated with restructuring our business. Any of these event could cause us to incur significant charges. For these and other reasons, a failed Merger or Sale could materially adversely affect our business, operating results or financial condition."
Samantha is the one coming out of the woodwork and blitzing this message board with BS and inaccurate information. She is the one posting here 18 hours a day and calling the kettle black. For shame!!!!!
Yes Samantha, Blackrock owned loads of shares in Enron, Worldcom, Washington Mutual, CIT Group, Conseco, MF Global, Thornburg Mortgage, and Pacific Gas and Electric. What is your point?
Boiler room scammers desperately pump institutional holdings. "Fidelity holds shares, you should too". "Vanguard just bought shares, you should too". Samantha, why don't you post that institutions hold shares in every listed stock and that certain institutions run Index Funds and MUST buy shares in all the component stocks in the Index? Pumping Funds holdings is deception used by boiler room scammers to try to con mom and pop investors.
Samantha: "Paid Basher Handbook says "try to discredit respected posters" Pssssssst, Samantha, I hate to break this to you, but you are not a respected poster. Your feigned indignation is laughable.
Samantha, you have provided some valuable commentary here. Like me, you believe that the deal will close, and if not, that RAD has substantial value which will allow for a path forward. We could be mistaken. But, at least we attempt to be rational. The appearance of this new poster who has 10 aliases, which oddly, converse with one another, is an annoyance. He is not willing to engage in productive dialogue and is comfortable stating falsehoods and half truths. I think that responding to someone like this is a waste of time, as it just plays into his game. I have a feeling that we can mute more quickly than he can reproduce. That's how I intend to handle it. I don't mute many here, but have no trouble if I am not getting value from what is being written or believe there is bad intent.
Reported Greatdayisback2017 for years of non stop Spamming from$8+ He will be gone soon , just like greatdayforinvesting got kicked off
Will WBA really pay $6.50 for a stock that has been in a downtrend all year and is now in the 3's ? Maybe, maybe not.
Here some some "FACTS" to thing about. All 3 B&M drugstores CVS, RAD, and WBA have been losing PPS value the last 2 years while the "Markets" have gone up. Compare CVS,RAD, WBA, IXIC, DJI on a 2 year chart. IXIC up 21%, DJI up 18%, RAD down 57%, WBA down 5%, and CVS down 20%. The era of the B&M drug store is dead. Some , if not all will go BK and if they can hold on there will be fewer of them since the "Big Box" stores and Supermarkets will do the same day service otherwise "Mail Order" will be the cheap way to order drugs.
Bashers coming out of the woodwork!
If they are all such expert stock analysts and accountants, then why post here18 hrs a day to warn us little peeps about our coming doom? Why not get a job as an analyst or accountant and silently short the stock?
All it takes is 1 FTC member to make the bashers all disappear!
Another laughable quote from Josh Koosman at NY Post. This one comes directly from his well placed source (late last year) in regards to the Valspar Sherwon Williams Deal.
“I don’t think this gets through the FTC without significant divestitures, if it goes through at all,” a well-placed DC source closely following the situation said.