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To: KeepItSimple who wrote (83905)	11/10/1999 6:22:00 PM
From: Glenn D. Rudolph	Respond to of 164684

This is not off topic in my opinion: "November 10, 1999 Rite Aid Shares Tumble 33% Amid Confusion About Outlook An INTERACTIVE JOURNAL News Roundup Rite Aid Corp. shares fell 33% Wednesday after the company warned investors not to rely on its previous earnings outlook and canceled a conference call with analysts. Shares in the Camp Hill, Pa., drug retailer fell $2.625 to close at $5.3125 Wednesday in New York Stock Exchange 4 p.m. trading. Analysts said Rite Aid must either state its financial situation immediately, or continue to watch its stock tumble. "The market's running scared right now, and I don't think anyone wants to wait and see what the news is," said Brian Raabe, an analyst for Collins & Co. The stock tumbled after the company said Wednesday not to rely on "forward looking profitability and cash flow information" it shared at an Oct. 11 analyst and investor meeting. The company, the nation's third-largest drug store chain, also said in a news release that it canceled a conference call scheduled for 5 p.m. EST Wednesday. Mr. Raabe said an associate in his firm has been trying to contact company executives all day, without success. "I don't know if we can get through today, but they're going to have to reschedule this [analysts' conference] call" and offer some explanations, Mr. Raabe said. "It's a bad situation. I never thought the stock would get this low." He said conjecture is that news of the Securities and Exchange Commission's contacting Rite Aid may have caused the company to delay the conference call. The SEC scrutiny comes in the wake of Rite Aid saying in October that it would restate downward by about $500 million its earnings for its last three fiscal years, wiping out half its reported pretax earnings for that period. Rite Aid, the No. 3 drug retailer, had already restated those results earlier this year. Its chairman and chief executive officer, Martin L. Grass, also resigned in October. Karen Rugen, a Rite Aid spokeswoman, confirmed that the company had been contacted by the SEC's Enforcement Division, but declined to comment on any specifics. She said Rite Aid isn't aware of any formal investigation by the SEC, but said "given the size of the restatement, approximately $500 million, one could be anticipated." A spokesman for the SEC declined to comment. The SEC's enforcement arm typically investigates potential violations of securities regulations, and has the power to bring civil cases against individuals and companies. The agency informally makes inquiries about many companies each year, and probes often don't lead to formal investigations or complaints. Rite Aid has attracted attention over the past year as the drugstore chain has struggled to integrate several major acquisitions and remodel and move many of its stores. Rite Aid is also likely in need of financial first aid and isn't likely to get any soon, said John Ransom, an analyst with Raymond James Financial. The events of the last few days make prospects for the firm's recovery ever more difficult, he said. Once retailers get into a situation where vendors, employees and customers are losing confidence in the company's future, it's difficult to reverse, he said. "We see the stock still [heading] on the downside and it will be tough to right this," Mr. Ransom said. "Rite Aid doesn't really own anything. Their inventory is financed, as is their real estate, so they are dependent on others to give them money and those people are likely to wait as their bargaining position is strengthened" as the company gets more desperate, Mr. Ransom said. The company, he said, has "made a lot of enemies over a long period of time. And those chickens are coming home to roost." "

To: KeepItSimple who wrote (83905)	11/11/1999 12:23:00 AM
From: H James Morris	Respond to of 164684

Kis, do you know what William, and you have in common? Neither of you two ever answered a direct question. I think it's time for the three of us to move on, and leave this thread to fresh blood. I'll be the first to leave by the end of this year, with no problem.

To: KeepItSimple who wrote (83905)	11/11/1999 9:15:00 AM
From: Robert Rose	Read Replies (1) \| Respond to of 164684

So what stocks are you short now, kis?