Trying to find the balance between being the person my dog thinks I am and the people our parents warned us about.
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That would be nice.
I know, but gotta try. As a trained financial planner and active member of AAII it's our mission to provide unbiased investor education to the public. Can't save everyone, but happy for the few who do benefit. If I were religious, I'd preach prosperity theology like the late Rev. Ike from Chicago, but I'm not.
Not semantics. Trying to educate people on the difference between public vs private companies so people become better informed traders.
Yes, I'm focused on the deal. Without any new info from Albertson's (pro formas would help), hard to peg a value. We'll see RAD's next quarterly report o/a April 12.
If I had to take a wild, but educated guess on present info, I'd say we would get $2.00-2.25 out of the deal, possibly more if Albertson's number hold.
Yes, private companies do have shares. They just do not trade publicly. Therefore valuation is different and more difficult. Basically what investors will pay for shares when they make a private placement into the private company. Read this:
https://www.investopedia.com/ask/answers/09/how-to-value-shares-in-private-company.asp
At the time of the proposed Now withdrawn) 2015 IPO, Albertson's had 409.8 million shares issued. See http://www.nasdaq.com/markets/ipos/company/albertsons-companies-inc-970028-78908
LOL. Good catch! Correction:"cusip" number.
What the market is saying about the deal:
So here is the math behind the deal in my post https://investorshub.advfn.com/boards/read_msg.aspx?message_id=138675885
Generally, when deals are announced they will trade close to, but under the valuation. A bit of a hedge and a 5%-10% discount is not unusual. That said, RAD should be trading at about $2.25- $2.38.
However, it appears that the market is not buying Albertson's valuation of $23.16 for it's shares.
If we take the current trading of RAD at $1.60 today and with a deal giving 1.079 shares of the new Albertson's for every 10 shares of RAD, we would take 1 share of RAD X 10 = $16. Divide $16 by 1.079 and that mean the market is currently valuing Albertsons at $14.83. That is a 36% discount!
When Albertson's initially proposed its IPO (from my same post cited above)
Thanks. Glad those links clarify things for you. IPOs not only take longer but they also cost the issuing company more.
Now, what we are seeing in the market, is that the market is not buying Albertson's valuation of approx $23.15 at the time the deal was announced.
What are you not understanding? Albertson's deal is to buyout RAD. Albertson's will go public via a reverse merger and RAD shares will be converted to Albertson's shares at which time it will get a new CUSIP number and new trading symbol. Read this: https://www.investopedia.com/ask/answers/08/reverse-merger-ipo.asp
Also, private companies do have shares. They just do not trade publicly. Therefore valuation is different and more difficult. Basically what investors will pay for shares when they make a private placement into the private company. Read this:
https://www.investopedia.com/ask/answers/09/how-to-value-shares-in-private-company.asp
Here's where you get the 1 share of Alberstons:
https://marketrealist.com/2018/02/albertsons-proposes-merger-with-rite-aid
Via the reverse merger. R/m's are not the same as an IPO. With an r/m you do not need an IPO.
https://www.investopedia.com/ask/answers/08/reverse-merger-ipo.asp
Yes, I'm familiar with the press release, but how do YOU figure "no more $1.83 per share cash and 1 share of Albertsons or 1.079 share of Albrtsons for 10 shares of rite aid valued at approximately $2.30 per share of RAD."
That deal is still on.
How do you figure that?
https://www.marketwatch.com/Story/albertsons-withdraws-ipo-plan-because-of-rite-aid-merger-deal-2018-04-06?&siteid=yhoof2&yptr=yahoo
The IPO docs were not effective because the terms had not been completed. Just normal course of action. Proposed IPO was before the offer to buy RAD, so no longer needed.
As I understand it the deal is still 10 shares of RAD for 1 share of Albertson's plus $1.80.
But, we will have to what the market values the new Albertson's shares whenthey go public
Much adoo about nothing. The IPO is moot as it is no longer needed. The purchase of RAD creates a reverse-merger and Albertson's goes public without the need of an IPO.
Merger update - waiting period expires http://www.supermarketnews.com/retail-financial/albertsons-rite-aid-merger-edges-forward
So the song remains the same? Surprised they are still around.
Hi $hell. This company doing anything or is is just a shell keeping up its filings?
But you would great tutors if you wanted to. LOL.
It was mentioned not as a bottom, but a point from one could buy with upside potential.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=138705407
Looking for a job at the White House? LOL.
Prior Albertson's - Rite Aid relationship. Apparently, Albertson's was an EnvisionRX client before. Now adds a little more sense as to why Albertson's was interested in Rite Aid in addition to the retail pharmacy side. Also the 10-year deal that Rite-Aid got on drug purchases via Walgreens can now extend to the Albertson's drug stores that will get rebranded as Rite-Aid.
https://www.forbes.com/sites/brucejapsen/2018/02/26/how-albertsons-paves-a-path-for-amazon-to-buy-express-scripts/#70c27164265a
The article goes on to muse that Amazon's target in the healthcare arena might be Express Scripts
Let's hope that the RAD shareholders hold out for a better price: https://seekingalpha.com/article/4150445-vote-rite-aid-albertsons-merger
Let your voice be heard and vote for a better offer https://seekingalpha.com/article/4150445-vote-rite-aid-albertsons-merger
Sorry Gold-Coast, but the announced deal will limit any upside speculation to less than $2.50 unless a better deal is announced. But, your chance is in the link above.
Mi amigo Diego pistolero. You bottom fishing here, too? I'm taking a beating on this one and DB.
Don't thank me. Thank the market. I still have my shares.
Thanks, but that is now old news since they are pre-merger stats. Some of the performance (e.g., earnings) might still be relevant for awhile, but we will have to see what sort of pre-formas, if any, will be offered as part of the merger and of expected synergies.
Requiem for RAD?
Nate 24, see: https://seekingalpha.com/article/4148793-rite-aid-time-move?
Yeah, it traded up to $2.80 premarket, but then fell rapidly towards the open. I think folks initially reacted without crunching numbers. Had I crunched the numbers a few hours earlier I would have sold.
Where do you get $2.65? Looks like "done deal" in principal to me after looking at https://seekingalpha.com/article/4148449-albertsons-acquire-rite-aid-rad-slideshow?app=1&auth_param=9j715:1d8os0m:4d6ecc23ad22b0bad2d40c81d0fd3591&uprof=45
That said, if you read the forward statements on Slide 3, Rite Aid shareholders will have a chance to vote on this. I'm not holding my breath since by the time things get to this point, the deck is stacked against the small shareholders. Standley (Rite Aid CEO) has already carved himself out a slot as CEO of the new larger company (thanks, John, for looking out for the shareholders...NOT!).
Not short, but long at $2.53, which is why I am disappointed with the deal. However, having sold some covered calls over the past couple of months, my adjusted basis is $2.32. I will probably hold and take the Albertson's shares (researching them in the interim), sell calls on the newly listed Albertson's and then decide whether to sell and move on to something else or hold.
Personally, I liked Albertsons. We had several nearby where I lived in Flori-duh before competition from Publix finally drove them out. One of my neighbors was even a pharmacist for Albertsons before they closed their store in Mission Bay.
That was based purely on speculation, not a deal on the table. Please call Albertsons and tell them you are not happy with the deal.
Sorry everyone, but $2.50 is the max. Do the math.
see my post #8198:
Today's wild speculations are an example of why DIY investors underperform the market;
https://www.fool.com/investing/general/2015/11/01/the-average-americans-investment-returns-and-how-y.aspx
We're saying the same thing. I have generally found that when such announcements come out that the market often discounts the price by a few percentage point until the deal completes. That's everyone's ( especailly the MMs) way to stretch a few extra percentage points out of the deal.
If you accept the Albertsons shares you will have 5595 shares of the newly listed Albertsons.
That would be nice, but what do you base this on? Numbers please. Yes, IPO's generally rise right after the offering and then 90% fall below the offering price. Also, this is an r/m, not an IPO, with a large established business so a little less volatility than the usual IPO.
Depending on how the options market shapes up today, I may ride it a while.
Seems too cheap to me, unless the future outlook was very bleak. But WAB was willing to pay more per share, even in the final deal. Something fishy here?
Thanks. Pre-market at 2.29 x 2.30. We're getting a bit screwed here. Glad I made a few bucks on options; may get out close to even. Or take the share exchange and take my chances.
Personally, always did like Albertson's when they were in Florida. Mostly for the meat dept and that they also operated liquor stores (sort of like the Jewel-Osco model). One stop shopping drugs, alcohol and munchies.
Rite Aid (RAD) Alert: Johnson Fistel Investigates Proposed Sale of Rite Aid Corporation; Are Shareholders Getting a Fair Deal?
SAN DIEGO, Feb. 20, 2018 /PRNewswire/ -- Shareholder rights law firm Johnson Fistel, LLP has launched an investigation into whether the board members of Rite Aid Corporation (NYSE: RAD) ("Rite Aid") breached their fiduciary duties in connection with the proposed sale of the Company to Albertsons Companies.
On February 20, 2018, Rite Aid announced that it had signed a definitive merger agreement with Albertsons Companies. Under the terms of the agreement, in exchange for every ten shares of Rite Aid common stock, Rite Aid shareholders will have the right to elect to receive either (i) one share of Albertsons Companies common stock plus approximately $1.83 in cash or (ii) 1.079 shares of Albertsons Companies stock. Albertsons Companies shareholders will own more than 70 percent of the combined company, which is expected to trade on the New York Stock Exchange.
The investigation concerns whether the Rite Aid board failed to satisfy its duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for Rite Aid shares of common stock.
If you are a shareholder of Rite Aid and believe the proposed buyout price is too low or you're interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker (jimb@johnsonfistel.com) at 619-814-4471. If emailing, please include a phone number.
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
jimb@johnsonfistel.com
View original content:http://www.prnewswire.com/news-releases/rite-aid-rad-alert-johnson-fistel-investigates-proposed-sale-of-rite-aid-corporation-are-shareholders-getting-a-fair-deal-300601139.html
SOURCE Johnson Fistel, LLP
/Web site: http://www.johnsonfistel.com
> Dow Jones Newswires
February 20, 2018 08:57 ET (13:57 GMT)
Profetti, I think enough people have done the math. See my post 8198. I hope there is a surge based on retail buyers who have not done the math.