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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Ditchdigger who wrote (24189)	3/13/2001 7:04:33 PM
From: Sergio H	Read Replies (1) \| Respond to of 29382

Good evening DD. On RAD, you did see the deal announced yesterday with NUTX, right? And you're trying to play NUTX by buying RAD? <ggg> The block buying came up recently on the Bloomberg terminal: netcognizance.com I suspect that there is a great deal of short covering going on and much more to come. Did you see the size of the short position and that the Co. plans on retiring a large amount of convertibles? (refer to this past weekend's discussion :-)) biz.yahoo.com RAD has more than the normal interest in getting the stock price up: <November 9, 2000 Rite Aid Corporation announced that it has reached an agreement to settle the consolidated securities class action lawsuits pending against the Company in the U.S. District Court for the Eastern District of Pennsylvania and the derivative lawsuits pending there and in the U.S. District Court for Delaware. Charges in the suits relate primarily to certain accounting practices and financial reporting under former management. Under the agreement, Rite Aid will pay $45 million in cash and issue shares of Rite Aid common stock in 2002. The shares will be valued over a 10-day trading period in January 2002. If the value determined is at least $7.75 per share, Rite Aid will issue 20 million shares. If the value determined is less than $7.75 per share, Rite Aid has the option to deliver any combination of common stock, cash and short-term notes, with a total value of $155 million.> Technicals look good. RAD has established a one month uptrend bringing the 50 day MA in proximity to crossing over the 200 day MA. A little patience on RAD could turn out very rewarding. I think that I'll join if I can get in at as it tests support just under $5. The short covering that will accompany the warrant conversion makes this a compelling play. Good one Ditch. btw, Did Barton change his call on GE yet? Sergio

To: Ditchdigger who wrote (24189)	3/13/2001 7:47:25 PM
From: JoeinIowa	Read Replies (1) \| Respond to of 29382

RAD DD, Took a look and was not all that impressed. They are losing at least 100M per quarter and already have way too much debt. I'm not sure how they survive longer than another quarter without some type of additional cash infusion. I see no way for them to actually make money within the next year although they may do better than last years quarters with sales increasing per store. The final thing that would stop me from buying them is the competition factor in Drug stores. We have another Walgreens pop up on a different corner every week it seems. Joe