Story Stock RAD
Story Stocks
27-Sep-07
11:12 ET (27-Sep-07)
Rite Aid (RAD):
Last April we recommended staying clear of Rite Aid Corp. (RAD, 5.05) given its stretched valuation.
In light of Rite Aid's earnings release this morning, we would continue to avoid this stock. The company posted a loss of $0.10 per share as it began integrating Brooks and Eckerd stores into operations. Reuters Estimates informed Briefing.com that the loss is comparable to the consensus estimate of a loss of $0.06 per share.
Though revenue gained 54%, now $6.6 billion, sales were offset by increases in interest expenses and other financing commitments.
The company revised its previous full year sales forecast to a range of $24.5 billion to $25.1 billion from a range of $25.3 billion to $26 billion. Rite Aid expects to record a loss of ($0.27) to ($0.15) per share. This estimate includes charges, but may not be comparable to the consensus estimate for a loss of ($0.12) share.
Until the company's integration efforts become accretive to earnings we believe investors should wait this one out.
--Jeffrey Ham, Briefing.com
I myself will take his advice as RAD is getting killed today. Down .19 and may go down to $3.00 level. But i still will keep this on my radar cause once they get this thing restructured....it will be time to load the boat. File this one away.
YOU JUST BOUGHT HOW MANY SHARES!?!?!?
