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 : The Art of Investing -- Ignore unavailable to you. Want to Upgrade?

To: Wren who wrote (564)	3/13/1999 9:56:00 AM
From: kendall harmon	Respond to of 10654

Oliver I am going to post Cramer's column and my response. Here is one reason for the panic selling in RAD yesterday, this column by James Cramer of thestreet.com posted at 1:17 Friday afternoon. Sunbeam (SOC:NYSE), Cendant (CD:NYSE) and now Rite Aid (RAD:NYSE)? Sure looks like it. Analysts had been in constant contact with this company and business was supposed to be rocking! Normally I am all over these delayed opening gaps down. But not when they concern accounting problems, and this one is a doozy of accounting problems. Did the CEO just not have a clue when he guided analysts to rosy forecasts recently? I got enough problems with good companies. Who needs this headache? Funny, we are almost celebrating the anniversary of the Cendant news. This Rite Aid situation makes me almost nostalgic for that gaffing -- the largest of my career, by the way.

To: Wren who wrote (564)	3/13/1999 9:58:00 AM
From: kendall harmon	Read Replies (1) \| Respond to of 10654

My response to Cramer on RAD. I like the guy but this was a disappointing effort. I write as one of James Cramer's big supporters, but confess bewilderment as to his column on Rite-Aid today comparing it to Cendant and explicitly citing "accounting problems," not only in the text but also in the column title. Rite-Aid blew it, and for sure there are serious management problems, since they clearly overextended themselves in opening too many new stores too fast. They also had acquisition costs from a merger that got moved forward and may have been higher than anticipated. There were even concerns about the company's financial condition because of the large amount of short term debt, although Moody's made positive comments about senior notes right after the close. Lots of concerns and problems, yes, but accounting problems--nothing in the many news releases today mentioned this. Unless Mr. Cramer can be specific with many examples, he needs to admit he was far from accurate. Your use of his inaccurate statement in the title of his piece only makes it worse. Like Cendant? Come on! Where is the need to restate earnings for multiple prior quarters? Where are the questions involving accounting firms? This is not good, but Cendant two this is not.