I recently wrote a trade note on fortifying my position on Rite-Aid. With the price this morning down 1.5% as I write this, you may be thinking..."That Dude is Crrrrrraaaaaazzzzzyyy!", but let's look at the facts.
1. Same store sales have been consistently rising the last few months as the Brooks & Eckerd acquisition start to affect the bottom line.
2. Stock price is at or near it's 52 week low. Yes this is a positive.
3. Brooks & Eckerd absorbtion is nearly complete.
4. Financial issues appear to be settling.
Of course these are subjective positives, but one of two things will happen in my opinion. The stock price will rise as results improve over the next 2 quarters OR a buyout offer is coming. As I stated in my recent trade note, either will net me a return, and with the lower current price may also be a good entry point for shoring up existing positions and opening new ones.
With the information provided in my recently received report regarding the pending annual meeting on 6/25/08, it appears to remain a good investment, although a longer position than I had originally intended. Granted I have a vested interest as an owner of this stock, but I would certainly dump it if I felt there was no chance of recovery for this stock. Your opinon may of course differ from mine.
DISCLAIMER: I personally hold this stock and the opinions expressed are affected by that fact. These are merely my opinons and the choice to buy/sell this stock should be your own based on your own research and comfortable level of risk.
