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I took a 50% haircut on this one. Now to find something that has a decent shot at a double and get my money back. GLTU!
They appear to be on a mission to eliminate their debt, which is a positive thing long-term. If they can wipe it off the books by way of the dilution and the deal with WBA, they will probably execute a reverse split and come out of this squeaky clean. I just don't plan on being one of the suckers who pays off their debt. I'll look at it again when the dilution stops. They will drive it well under $1 at this rate.
If the share structure was steady, I could see a bounce. However, dilution has no bottom. It is impossible to compete in a market where the company is willing to accept any price for its shares. Down it goes.
Out of control dilution changes everything. I'm out.
Management seemed to be hinting strongly about big news coming. They made sure to say their foreshadowing should not be construed as advice to buy. I bet their friends and families are loading the boats :)
It only sucks because shorts are in control. The numbers are better, and the WBA deal is beneficial to the company. There are manipulating forces driving this lower.
Just because shorts are driving it lower, it is not a "turd." Look at the improved financials and the deal to sell off underperforming stores to Walgreens. This is headed higher. Get some or be one of the people on the sidelines saying "what if I had loaded."
Financial turnaround in progress. Money-losing stores sold off to WBA. This has nowhere left to go but up.
Numbers look great compared to previous years. This is manipulation at its finest. The monkeys are playing games to get your shares.
The RAD/AMZN deal is going to catch so many investors by surprise. The way I see it, it's a matter of when, not if, AMZN buys the remainder of RAD.
The street is rumbling with this rumor. It's a perfect fit, and the rumor mill is buzzing that this is exactly what is about to happen!
Wrong. The stores being sold operate below the company average. Walgreens is getting the worst, not the best, of RAD's stores.
I'd put it around $9 per share. It's in a much stronger position with Walgreen's taking the losing stores. Some will do their best to convince you that RAD is worth less now that 2000 stores are gone, but their math is flawed. RAD lost nothing and is still worth every penny of Walgreen's initial buyout offer. RAD is being paid for those stores, and the money from the sale goes on the balance sheet. Those stores were operating below the company average. Once the deal is totally completed and they become Walgreen's stores, their losses will no longer be a drag on RAD's financials. I keep saying this deal is addition by subtraction. RAD is now worth more than the first offer from Walgreen's.
RAD's EnvisionRx is what AMZN needs. Like I said earlier, keep your eyes open for AMZN news :)
Monkeys playing with the pps hoping to scare loose shares. They will do this until they have covered.
I have suspicions involving both her and the former CEO.
Amazon looking at remaining RAD business? Stay tuned!
It's the game the market makers play. Trade shares back and forth, drive it lower, scare loose some shares. I've seen it hundreds of times. Give them two days to cover and they'll run it to $4.
It is a step in the direction of rectifying the misguided acquisition of Eckerd. Things are being returned to a pre-2000's state, back to a time when the financials were much stronger and the company was smaller and tighter. Hold on is correct, but you need to hold on as this takes off.
That deal also included EnvisionRx and other considerations not being transferred to WBA in this deal. I still see it as a roughly equal deal but on a smaller scale.
Paying roughly half of the original offer and getting less than half of the stores. Sounds like they are still paying the same approximate amount on a per store basis, to me. There is some screwy math being thrown around on this board today.
Exactly. WBA is taking a group of stores that performs below the company average. RAD is keeping a group of stores that performs above the company average. This company is stronger now than it has been in many years. I'm seriously considering going very long here. A pps over $10 by 2019 is entirely possible.
Your math is severely flawed. You are forgetting the compensation being received in exchange for the stores that are being sold to WBA. It is being used to pay off debt, and that debt is already part of the current valuation. The stores being sold do not simply vanish into thin air. RAD is being paid for them, and that money cleans up the financials. This company is now positioned to be stronger than it has been in years. RAD has not been this strong since the days before the ill-advised Eckerd acquisition. This is truly a case of addition by subtraction. They are selling off roughly 2000 stores that are underperforming compared to the company average, and they are using that money to pay off most of their debt. Surely you can't think that selling half of the company means it is now worth half as much. Do you really think they just gave half of it away? WBA is paying huge money to RAD.
Have you even read the terms of the deal? RAD is keeping over 2000 stores! What are you talking about? "Almost no stores?" That is completely false. Laughably so! This company is going to be stronger than it has been in years thanks to this deal. Vastly reduced debt, keeping a portfolio of over 2000 locations that perform well above the current company average, and EnvisionRx. Do some homework and you'll be buying at these levels.
READ THE PRESS RELEASE. FTC APPROVED, DEAL MADE.
Approx. 1.05B shares outstanding. That values the company at roughly $2.7B. Take into account the remaining 2000+ stores, EnvisionRx, and other factors, and you will find that RAD is worth a lot more than that. They are free to seek other suitors for the remaining business, and a price tag of $7+ per share is not unreasonable. This is a definite buy and hold.
Just monkeys shaking the tree.
WBA is taking RAD's lower performing stores AND eliminating the vast majority of RAD's debt. RAD will emerge a much stronger company, keeping a portfolio of stores that perform better than the company average along with having an almost balanced financial sheet. Any debt carried forward will come with terms much more favorable to RAD since it is in a stronger financial position. Also, RAD gets access to drugs at a much cheaper price thanks to the deal, as they will be able to get them through WBA's distribution network. This could very well pop past $10 once all of the dust settles. RAD is going to be STRONG after this deal!
Now comes the mega million dollar question. Does Rite Aid continue as it's own entity? Or does the remaining business get sold in a deal even larger than the Walgreens deal?
EnvisionRx. Don't forget, RAD gets to keep it as part of the deal.
An almost clean balance sheet, retaining a portfolio of stores that perform above the current company average, and keeping EnvisionRx. This is easily a $10 stock one year from now.
AH news wouldn't surprise me here.
The leaks involving RAD news have been spot on so far. We heard rumors before the last FTC news and they proved to be correct. Now, more rumors are leaking out to the markets that the deal is a go with a few tweaks. Anyone failing to cover right now is asking for pain. No, begging for pain.
Yes, RAD will move higher for years as a result of this deal.
No games, just a MULTI-BILLION DOLLAR DEAL. This isn't some bag of lies pump. It's a legitimate massive corporation involved in a mega deal. Perhaps sub-penny stocks would be more to your liking?
WBA is taking RAD's lower performing stores AND eliminating the vast majority of RAD's debt. RAD will emerge a much stronger company, keeping a portfolio of stores that perform better than the company average along with having an almost balanced financial sheet. This could very well pop past $10 once all of the dust settles. RAD is going to be STRONG after this deal!
https://www.fool.com/investing/2017/09/17/why-rite-aid-corporation-could-be-a-gold-mine-for.aspx
Absolutely. Some will be caught, and that is good for us :)
That is a flat out lie. A deal is done. It says so right there in the link you posted.
It's easily a $5 stock.
BOOM!!!!!
I've been telling peeps this is easily a $5-$6 stock. It's one of the easiest doubles I've ever seen.