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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: snerd who wrote (11275)	3/15/1999 11:42:00 AM
From: MMK	Respond to of 56535

RAD...info Monday March 15, 10:14 am Eastern Time RESEARCH ALERT - Rite Aid eps estimates cut NEW YORK, March 15 (Reuters) - Lehman Brothers cut Rite Aid Corp.'s (NYSE:RAD - news) fiscal year 2000 and 2001 earnings per share estimates, but maintained a buy rating on the stock. -- Cut fiscal year 2000 earnings per share estimate to $1.69 from $1.84. -- Cut fiscal year 2001 earnings per share estimate to $1.93 from $2.15. -- Lehman says that although it is lowering the estimates, ''we think the uncertainty surrounding our forecast is far higher than it was in the past.'' -- Says: "As we see it now, the most recent problems relate to poor execution of the company's strategy, as well as weakness in internal controls and communication, rather than to more serious management flaws. -- Lehman says it is maintaining the buy rating despite the 14-7/16 point drop in the stock price on March 12. ''We think investors are more than compensated for the lower earnings outlook and the increased uncertainty in the outlook.'' -- Says: "We continue to believe that Rite Aid's business remains fundamentally sound and that recent problems are primarily nonrecurring. This should make the stock especially attractive to certain value investors. -- Share price was up 1-1/6 at 23-5/8 on the New York Stock Exchange.