lowtrade

[lazyeye]

Good post. I think it's all about sentiment. SVU is pretty much a HOLD according to many recent analysts and has been downgraded a lot in '12 and '13. If they beat estimates then perhaps a short spike (maybe a buck?) is in order. Is a $2 billion m/c justified for SVU? Maybe, maybe not. Again, it's about attractiveness, the future and demand. Ever been in a Save-A Lot? I have. It sucks. Quite frankly, I don't know how it survives at all anywhere. Rite Aid isn't a walk in the park either, but its more visible and people know the name.

I think you maybe answered many of your questions in your own post. RAD is bigger, more established and well known, and has more potential to be around long term. RAD went nuts the past 12 months, and downgrades and other factors hurt SVU while traveling on the same road.

Whether either or both are overbought or oversold remains to be seen.

It will be interesting to see what happens to SVU today. It's obvious there haven't been any earnings rumors either way based on recent stock activity.