Rite Aid Corp (NYSE:RAD)

Dad still goes there. Company not going away. Worst is it may go private.

Slowly decreasing revenues due to per-storesales, despite increasing stores andoverall revenues.

Rite Aid has rallied this year after it surprised investors and analysts with its first profit in several years. However, the company's outperformance was probably a fluke, driven by the Walgreens-Express Scripts dispute. With those two companies having resolved their differences, Rite Aid sales growth has stalled out. The steady growth and superior scale of CVS and Walgreens will continue to squeeze Rite Aid over the next few years, outweighing any benefit from the aging of the U.S. population.

If industry conditions improve dramatically, Rite Aid could spike because it has a such a low market cap (and is highly leveraged). On the other hand, a downturn could send the company into bankruptcy. This "turnaround story" doesn't seem to be worth the risk.

Rite-Aid has great room to grow and is in the midst of a multi-year rebuilding phase. Last quarter's performance shows that RAD can pull off a profit even against the "big boys" competitors of Walgreens and CVS. I'm in on this stock based on RAD's short-term prospects as well as hopefully its eventual long-term gains if it executes its recovery strategy well.

Obamacare

This is a turnaround story here. I am hopeful to see a MAJOR change of capital/financing structure of the company in the next 6 months. Maybe also franchising out to unload debt.

With a better zsleaner balance sheet , I can foresee a stock that will worth in the $ 20+ $$ in 3 to 4 yrs. How much dilution & what coming quarters ahead to determine the pleasable outcome of this ??!!

Pierre Bouillon, MTL, Canada

they cannot compete and its not getting better

Company is extremely undervalued, visionary with their online clinic. Plus their reward cards are great. Management improvement, cost cutting and remodeling paying down debt that all sounds like a turnaround profitable company. I love money. Money is good. Money is green. I see a lot of green in Rite Aid. It is by Author Master Wallstreet available on Amazon kindle ebook. Rite Aid is my pick.

Nice market position but improperly executed. This is one business that would benefit from a franchise model. The stores should be more locally centric (but with national buying power) to provide small dollar high volume sales to consumers. Their debt to capital ratio is just unsustainable even with an improving economy.

They will be out of business !

Rite Aid faces many, many challenges; but they aren't going anywhere. I see the company slowly recovering from their worst days. Over $2/share in 6 months.

Will likely benefit from improved short-term results and a possible debt refinancing.

This corporation has great capacity to outperform the S&P 500 in the specially in the market. It should just continue doing well. I believe this company is real competitive since it have portrays integrity on its products.

Finally psoting a profit. Isnt very well known on the west coast, but there are a lost of stores on the east coast. Also with the agreement to sell gnc products in rite aid stores, that could also boost sales.

reported profit

6 billion in debt, only about 1 billion market cap, wouldn't be wise for other companies to take over. not a wide moat company compared to walmart, cvs, walgreens, etc, too many of them actually. id be surprised and learn something new if my pick is wrong.

12 more months to positive cash flow.

Just a big ol' loser! Hasn't turned a quarterly profit since 2007. AKA "SELL ME NOW!!"

When I first started to track this stock it was around 80 cents in 2010. Since then it has risen to $1.30 and over, reaching $2 earlier this year.

Yes, the company has a lot of debt and the senior management are over-paid, but we are seeing gradual improvements in overall performance. It will take time, but I am holding onto the stock expecting some growth over the next 2- 4 years.