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.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (18789)	4/12/2004 12:17:29 PM
From: - with a K	Respond to of 78627

Paul, RAD may be finally fixing their problems, or maybe I'm wrong and late, but I took a position this morning. Per Yahoo, P/Sales of .17, Forward PE of 15.3. Still lots of concerns, which may work to our favor as things improve and investors get on board: Debt, ultra skinny margins, negligent ROA and ROE, some insider selling. But estimates raised in last week. finance.yahoo.com and weekly chart showing a bounce off 50dma support: stockcharts.com[h,a]waclyiay[de][pb20!b50][vc60][iut!Lb14!Lc20]&pref=G Company: RAD Date: 4/12/04 Next year's expected earnings: $0.37 EPS growth rate used for estimate: 12 P/E maximum used for estimate: 12 Graham Fair Value: $9.38 Current Price: $5.65 $ difference: $3.73 Percent Growth to Fair Value: 65.97% Updates, advisories and surprises 5:31 p.m. 04/08/2004 By CBS.MarketWatch.com Rite Aid reports Q4 profits that top expectations(8:39 AM ET) NEW YORK - Rite Aid (RAD) reported fiscal fourth-quarter net income of $59.1 million, or 9 cent a share, vs. a loss of 2 cents a share in the same period a year ago, boosted by a reduction in store closing and impairment charges. Revenue for the quarter ending February rose 6.2 percent to $4.4 billion. Analysts surveyed by Thomson First Call had been expecting earnings of 8 cents a share and revenue of $4.4 billion, on average. Same-store sales rose 6.4 percent, amid 6.7 percent growth in pharmacy sales and a 6 percent increase in front-end sales. The drugstore chain also reiterated fiscal 2005 revenue forecasts of $17.4 billion to $17.6 billion and same-store sales growth of 5.5 to 6.5 percent. The stock closed Wednesday unchanged at $5.40. NEW YORK, April 8 (Reuters) - Merrill Lynch on Thursday raised its rating on Rite Aid Corp. (RAD) to "neutral" from "sell." The brokerage said the drugstore chain's latest quarterly results placated concern that its recovery had run its course and that extended valuations on its stock had ran ahead too fast. "There's a bit more juice to Rite Aid's recovery than we had cautiously projected," analyst Mark Husson said in a research note, citing an increase in fourth-quarter profit that Rite Aid reported earlier.

To: Paul Senior who wrote (18789)	5/21/2004 2:00:27 PM
From: - with a K	Read Replies (1) \| Respond to of 78627

RAD up even after negative article. Does this mean the bottom for RAD? stockcharts.com[h,a]daclyiay[pc50!c10!f][vc60][iut!Lp14,3,3!Lc20]&pref=G Snip: So the company is struggling, but what about the stock? Priced at less than $5 a share and with $16.6 billion in sales last year, maybe there is some value there, right? Wrong. When Duane Reade announced it was being bought last December at 10 times enterprise value to estimated EBITDA, the industry benchmark, Rite Aid shares quickly traded up to 9.5 times EV/EBITDA. But the stock has since declined to 7.8 times EV/EBITDA, in line with industry leader CVS, which has grown sales at close to 11% over the past five years, more than double the rate of growth turned in by Rite Aid. With no catalyst on the horizon to spark top-line growth and limited capital to defend its industry position, another run-up in the stock price does not appear likely. Short interest represents only 2.9% of the float, limiting the impact a short squeeze could have, making this stock best avoided here at $4.64. And if you do own it, it is an ideal candidate to sell to raise some cash. There are better opportunities out there. thestreet.com