Rite Aid Corp (RADCQ)

[Gerber Johnson]

Yes the situation is getting better for that. I've read several artilcles about possible suitors. The last one being Wal-mart for their Express shops. IMO Costco is a very differnt model for which RAD would do very litte for their core business. COST is a "club". A club only ! Walmart has Big Box Club 'Sams',SuperCenter Stores, Regurlar stores and the express stores ( more down sized ) for smaller locales. They are in between a reg store and a C-store. With a supply chain that includes health care a RAD aqusition would be a great fit. Wally also has the cash to do the deal and take down the RAD debt. As far as value I would expect to see a buyout in the $10 to $14 range. If someone else jumped in it could go higher. Remember a suitor would want this kind of deal after the turn around has started but before the "momentum" gets rolling. RAD is there right now