NYSE:RAD

Rite Aid Corp. (RAD)

0.04
-0.00 (0.00%)
as of Aug 30, 2024, 12:00:00 am Market Open.
6 watching
0
DON'T BUY

Has Walgreen and CVS. This is the poor cousin. They had a tough with input costs and the stock was hurt badly. It will probably recover, but when you can buy the other two, just go with them. This one is more speculative.

COMMENT

The poor relative to Walgreen (WAG-N). Has done really well in the last year or so but that is from a flirtation with bankruptcy. It is remarkable how some of the major retail chains in the US are in a very difficult, long-term position with the growth of ordering over the Internet. He would prefer to be with the leader Walgreen rather than being in the number 2 position.

DON'T BUY
This is not the right time to be a credit-constrained company. Good competition.
DON'T BUY
(Market Call Minute.) The most levered of the drugstores. Would go to Walgreen (WAG-N) instead.
DON'T BUY
Likes where management is going. This is a risk/reward situation and a turnaround story. Trades at a reasonable price/sales ratio, but has a lot of debt on the balance sheet. Made a large acquisition, which was too large for his liking.
DON'T BUY
Has a lot of debt. There is a lot of execution that has to happen.
DON'T BUY
Very cheap compared to its competitors Walgreen (WAG-N) and CVS (CVS-N). Has a lot of value attributes. Have just merged and if this goes through well and they are able to execute, upside is very positive. Have taken on a lot of debt which concerns him.
HOLD
Acquiring Brooks and Eckerd drugstore chains from Jean Coutu (PJC-T). They have enough scale, size and management to run these stores.
BUY
Hit a high in 03 and it is flirting with this old high now. During the last little move, there was a dramatic increase in volume. That's a sign there is real buying there. Put your stop at the recent low.
SELL
Hates this company. Has the worst balance sheet of any of the pharmacy retailers in the US. They have a lot of competitive disadvantages.
DON'T BUY
Have reached a 2% same store sales growth. $3 billion of debt. The trouble with the whole area is that there is a lot of competition from the Wal-Mart's of the world getting into pharmacy, etc. Would prefer Walgreens.
DON'T BUY
A lot of debt. Questionable management.
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