Rite Aid Corp (fka RADCQ)

[Prudent Capitalist]

The WBA deal may not be approved by RAD holders, but RAD is controlled by Institutional holders and they will not likely want to roll the dice on having RAD continue to flounder on its own. If the deal with WBA falls apart it will be a big negative for RAD and its shares will likely fall even further, IMO.

I was recently out in California in an area where there are both RAD stores and Walgreens in close proximity. I took note of some anecdotal evidence in terms of apparent traffic. The Walgreens stores appeared to have a lot of cars in the lot and customer activity, with the opposite being the case at the 2-3 RAD stores I passed by. We actually picked up some things at a Walgreens in La Quinta on a Sunday and it was very busy and crowded with customers.

Put simply, RAD needs this or another merger very badly, and going it alone does not appear to be a good proposition for RAD, IMO. But, I understand the counter view stated here that RAD has very poor management and if the WBA deal does not go through RAD holders can try to get rid of current management and bring in new blood to try to improve things. Hmmmmm.......