Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Rite-AID (RAD) Overdone or Done In? -- Ignore unavailable to you. Want to Upgrade?

To: Larry S. who wrote (362)	11/19/1999 12:23:00 AM
From: CatLady	Read Replies (2) \| Respond to of 700

News doesn't look good. NEW YORK, Nov 18 (Reuters) - Rite Aid Corp. (NYSE: RAD) said Thursday the Securities and Exchange Commission is beginning a formal investigation into the beleaguered drugstore chain and disclosed that long-time auditor KPMG quit after saying it could no longer rely on management's representations. The double blow to the company's already tarnished reputation comes after high-level resignations, profit shortfalls, accounting troubles and racketeering accusations that have pushed Rite Aid stock down close to its one-year low. full article: siliconinvestor.com

To: Larry S. who wrote (362)	11/20/1999 8:27:00 AM
From: Tatnic	Read Replies (1) \| Respond to of 700

>>>We dodged a bullet. The news that held up RAD today was that they would file a report outlining why their accounting firm resigned. This remains serious, but was not a chap 11 filing. It will be very revealing what they have to say. RAD remains a high risk investment, we probably have not seen the lows, and a chapter 11 filing remains a real possbility, especially if it becomes necessary for the company to continue to receive goods in the short term. For those with courage, the risk/reward ratio remains high. but it will be challenging. larry <<< Its only a matter of time, IMO, before the chapter 11 filing hits the street. This little dead cat bounce will just entice more bottom fishers to lay their money down and watch it disappear. SEC has begun their formal inquiry, fraud charges being sought in Penn, State of Florida looking into company overcharging for prescription drugs, what other warnings do people need?