Rite Aid Corp (RADCQ)

[Prudent Capitalist]

Well stated fung. The precipitous recent drops in RAD's share price are strictly due to the fact the original and first revised WBA deals did not go forward. RAD is thus left as a struggling stand alone entity with very poor financials and a lot of debt. RAD remains overvalued here based on the fundamentals IMO, and RAD is still trading above the target prices predicted by many analysts if the WBA deals did not go through in the original or first revised form. As for valuation, even at today's lower share price RAD is still trading today at 2.9 times cash flow and 2.6 times Book Value.