November 24, 2008
SpeculatingStocks.com Stock Pick: Rite Aid Corporation (RAD)
Stock Price: $0.31
Rite Aid Corporation is a drugstore chain with more than 4,900 stores in 31 states and the District of Columbia. The company's fiscal 2008 annual sales totaled more than $24.3 billion.
Rite Aid is a major brand that continues to expand. Patients fill their prescriptions at Rite Aid for various ailments and shop for over-the-counter medication for cold and flu and other illnesses.
RAD has been down significantly this year, but we see the potential for a major turn around in the future for RAD. Three independent proxy advisory firms have recommended RAD stockholders support RAD's Board of Directors' plan for a reverse split. The reverse stock split could be approved on December 2nd.
Reverse stock split is never a good phrase to investors, but in this case it looks like it must be done and we believe most of the negativity is already priced into RAD. After the reverse split, we expect investors to look at RAD in a new, refreshing light.
We believe RAD will receive major attention as a cold and flu season play over the next 1 - 2 months. Also, we expect RAD to begin its turn around.