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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: MythMan who wrote (212641)1/6/2003 9:26:20 PM
From: reaper  Read Replies (1) of 436258
 
no idea (assuming you were even asking an honest question <g>); don't know the company.

as far as RAD and your comparison to PETM, its POSSIBLE if they can get that damned balance sheet and inventory situation figured out. i made a bunch of money in PETM (though not nearly as much as i should have) when they changed up management and did a very good job re-positioning the store concept and liquidating a ton of their current account. until the most recent quarter, RAD had made absolutely NO progress along those lines, though to their credit they finally did in Nov. plus the competitive situation facing PETM was much more benign than RAD, which faces not only the druggists but also (and more importantly IMO) encroachment on their core front-end business by Family Dollar and Dollar Tree. you oughta take a close look at their leases and the insane (IMO) terms they've agreed to as well; that's a hell of a potential burden going forward.

they think they can get $200mm of free cash next year. i doubt it, but more power to 'em if they can. that said, i can find plenty of businesses trading for an equivalent multiple of 8x free cash without the $3 billion debt burden and cut-throat competitive dynamic.

good luck with it.

Cheers
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