Rite Aid Corp (RAD)

I can't see a company this size staying behind in the markets forever. Yeah they had their scandal but a closer look shows a company that belongs in the ranks of Walgreen and CVS and is making every effort to achieve the status of a respectable group, but are still being punished for a small group of criminals.

We all need drugs. Positioning is everything. RAD has made some extremely strong moves on location of stores.

True, Rite Aid has their bag of problems, however at <3 P/E the stock is extremely cheap. Their brand name alone is worth more than that. Plus, at $2B market cap they are an easy acquisition target by Walgreen or CVS, which seem overvalued and might be tempted to cash in their high stock prices by sweeping up competition.

Acquisition sets up Rite Aid for major growth over the next several years.

They have too much debt and their valuation is a bit expensive. They barely made enough money to cover their interest payments. This is a company that is dependent on credit lines to continue their operation. In the credit environmentwe have today, this is just suicidal. The biggest risk is their inability to borrow money if credit markets should tighten further.

When they finish remodling their stores to make them more like Walgreens, Look Out!

Positive return on capital over the last five years, which should continue. Way undervalued considering it will have almost the same number of stores as CVS and WALG once the aquisition is completed. However, current market cap is only a fraction in comparison. Lots and lots of room for this one to grow.

I don't think they will have as much a problem managing debt as some others do.

The population is aging. Rite Aid has placed itself in lucrative markets and has increased store presence in these markets with the addition of Brooks and Eckerd. CEO Sammons is not playing for the short term to impress or garner a daily review from traders or pundits on TV, she sees the long term growth, she sees the population changing, and she isn't backing away from her plan...Yes for some seeing a stock price under three dollars for the third largest drug store chain may confuse the layman...but store profits show a slow but steady increase, CEO Sammons is respected and her reputation is a major factor along with RAD when a company is repairing and growing simultaneously. I think with CEO Sammons at the helm and a plan to bring back Rite Aid to a power in the class of Walgreens and CVS, success is inevitable.

Eckerd acquisition will hav little effect. The once proud Eckerd corp. has been beaten to a pulp. First, the LBO leaders, in an effort to enhance a sale, reduced payroll to the point customer service suffered, then after JC penny acquired it, they sucked all the life out of it. Very little left.

Rite Aid is a good turnaround story. They have been very disciplined in paying down their high debt load and cleaning up their financials. And assuming the integration goes well, their purchase of the Eckard stores will give them better scale against their top rivals CVS and Walgreens. Plus, they're trading at a mere 3 times earnings -- CHEAP! There's a ton of upside here, and if not, that low multiple makes Rite Aid a great takeover target. I wouldn't expect any big moves in the stock for a while, perhaps another year until they complete and justify the integration, but after that this stock could do very well.

Rite Aid has to many problems right now. I think it hurt them when they purchased Eckerd Drugs

The worst may be behind this mediocre Retail/Pharmacy Store.

look for a merger or buyout soon - company worth may more than current val

Current stock price is quite low, reflecting challenges in RAD's Aug 2006 Brooks/Eckerd acquisition. If (...if) RAD can swing back to profitability, stock price should see substantial improvement. I would wait to see financial evidence of operational improvements before putting real dollars into it.

Rite Aid might be taking over the world...but I worked in the store for a long time and I am close friends with people in corporate. Rite Aid treats it's employees horribly and wants nothing more than to make money. They couldn't care less about the customer. I hate Rite Aid.

A speculative, turnaround drugstore play trading very close to all-time lows of $1.35/share as integration of Brooks/Eckerd along with promotional spending continues to generate losses. Longer term, over 5,000 locations should capitalize on convenience as consumers look for local solutions due to high gas prices.

Turn around underway here. They had a rough couple years in the past but the last year or 2 has seen the foundation of their recovery be laid.

From "near bankruptcy" to a big buyout, why not????

The acquisition of the Brooks and Eckerd drugstore chains, which was acquired by Rite Aid Corporation is expected to be completed by May 2007 end. The acquisition includes approximately 1850 Brooks and Eckerd stores and six distribution centers, primarily located on the East Coast and in the Mid-Atlantic states. With the acquisition, Rite Aid will be the largest drugstore chain on the East Coast and with more than 5,000 stores will achieve scale similar to its major drugstore competitors. Rite Aid Corporation is one of the nation's leading drugstore chains with over 3330 stores in 27 states and the District of Columbia. This provides for an opportunity to accelerate its growth strategy and strengthen its position. Brooks Eckerd acquisition is expected to be accretive in fiscal 2009 by $0.18 to $0.20 per diluted share

For the fourth quarter ending March 2007, Rite Aid reported 4.4% decline in revenues, due to one less week in this year's fourth quarter. Net income for the fourth quarter was $15.1 million compared to last year's fourth quarter of $1.2 billion. The company said it expects total sales for fiscal 2008 to be between $25.3 billion and $26.0 billion. Net loss for fiscal 2008 is expected to be between $47 million and $129 million or a loss per diluted share of $0.11 to $0.23 and includes estimated expense of integrating the acquired stores of $145 million.

In April 2007, Rite Aid entered into an exchange agreement with Longs Drug Stores to acquire six Longs stores in Washington, Oregon and northern California and prescription files from an additional six stores in Washington and Oregon. Upon completion, this agreement will give Rite Aid 138 stores in Washington, 72 in Oregon and 599 in California. Considering the above factors, the shares of Rite Aid represents a good buying opportunity for long-term investors.