Rite Aid Corp (RADCQ)

[Odessa99]

Correct. There are approx 1 billion common shares outstanding on Rite Aid. That puts the total market cap currently at just over $500 million. Gross sales for the most recently completed fiscal year was more than $21 billion. And even with the reduction in total store locations, the current forecast for next fiscal year is that sales will be at least $21 billion.

On that sales level, Rite Aid Sr. Mgmt have just forecasted a loss for the upcoming fiscal year of between $170 million and $220 million. Since the average healthy large cap public company trades at about 1.5 times sales, the avg healthy large cap company would be valued at about $30 billion (if they had an annual sales level of $21 billion).

Rite Aid's current market cap of about $500 million is less than 2% of $30 billion. Accordingly, I think that the coming weeks will demonstrate that Rite Aid common stock was very cheap at around 50 cents per share ($10 after 1:20 reverse split). As always, simply my opinion.

1 Billy float pos

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