Rite Aid Corp (RADCQ)

[Prudent Capitalist]

LOL! At its current price of $3.49 RAD is seriously overvalued here based on the fundamentals, and it is only trading up here due to the prospect of the WBA deal in the range of $6.50 - $7. RAD's fundamental ratios at the current $3.49 share price are off the charts: PE of 991 times earnings and 6 times Book Value.

So. it cannot be reasonably disputed that RAD shares are very overvalued here absent the WBA deal, and that RAD's share price will most certainly drop precipitously if the deal falls through. IMO, the $1.50 - $2.0 range is very realistic, given that it would still be several times RAD's book value and related ratios as a stand alone company.