RAD or no?

[MrBonita]

I have a buddy who has invested over 100k in RAD over the years and is currently getting hammered. He asked me if I think RAD is any good. I have never worked for RAD or know anyone who has. Does anyone know if the company has a chance to ever make it out alive if Amazon hits the pharmacy market? Is RAD a buy at 66 pennies?

Thanks

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[Momus]

Understand that RAD has no moat. That's the a reason it's cheap... If you wanna gamble for a quick buck/loss, go right ahead, it can go either way. But, let's not pretend this is an "investment" right now. You might double your money or lose it all.

 

[Twentytwelve2]

They just accrued too much debt when they expanded and bought out independents and opened too many stores AND their PBM business was over-priced when they bought EnvisionRX. All the retail giants all do the same thing- Rite Aid is no different. The issue is Rite Aid has a weaker PBM. Their PBM is almost half their current debt owed.

I honestly think mail order pharmacy is a terrible idea. Retail stores is better suited for prescriptions than mail order can ever be. Recalls? Wrong meds? Shipping delay? Dire meds? No refills? Mail order patients are screwed.

 

[TranslationalRPh]

RAD hasn't been a strong company for quite some time. Botched acquisition after acquisition. Leadership executed poorly. Shareholders suffered.

 

[mydogatemysuboxone27]

The one thing I will say is the leadership that RAD has now is the same leadership when the shares were ~8 dollars per share. So if you want some optimism that may be it. Also, at 66 pennies per share, if you go into it knowing that most likely you'll lose it all rather than making money, then it's all on the table. The chances of it turning around are really low, but you never know

 

[mydogatemysuboxone27]

The 1 year target estimate is sitting at 1.02 for RAD, which where it sits now at .64 cents projects it to be a 37.25% gain. But, the EPS is 0.583, so with every share that is purchased the company they're not making much profit. Most analysts consider it a hold. If you want to go for it it's ultimately you're call, sounds like a long shot though.

 

[PharFromNormal]

The one thing I will say is the leadership that RAD has now is the same leadership when the shares were ~8 dollars per share. So if you want some optimism that may be it. Also, at 66 pennies per share, if you go into it knowing that most likely you'll lose it all rather than making money, then it's all on the table. The chances of it turning around are really low, but you never know

Tell me more about the leadership...

When did Kermit Crawford join RAD and what was the stock price then? Also who was chairman of the board then and who is it now?
Standley lost a lot of power...
Also a new CIO like 2 weeks ago?

I’m definitely not pro-RAD but don’t say it’s the same leadership... cmon man! This is only the top of the top don’t make me pull out more churn they’ve had...

 

[Momus]

Market went up 1250 points
RAD: we are going the fu3k down..

 

[mydogatemysuboxone27]

Tell me more about the leadership...

When did Kermit Crawford join RAD and what was the stock price then? Also who was chairman of the board then and who is it now?
Standley lost a lot of power...
Also a new CIO like 2 weeks ago?

I’m definitely not pro-RAD but don’t say it’s the same leadership... cmon man! This is only the top of the top don’t make me pull out more churn they’ve had...

Before I joined RAD as an employee I took up RAD stock after reading there was room for growth. One of the analyst pieces I read said that someone had recently come on board that had direct relationship to the reason RAD stock was ~8 dollars a share. Granted, that was over a year ago at this point, so I'm trying to find the articles from around that time.

Disclaimer: I could 100% be misremembering this. You sound like you know a lot more about the leadership chain then I do. I also do not own Rite Aid stock.

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[M0df]

The only way out is to close down low performance stores and I haven't heard RAD doing that. Seriously, as soon as Walgreens could close down stores they didn't like in RAD acquisition, they closed them. Just look at Sears. Years of attempted revival and it is still about to go out of business. RAD as a stock is a day trading play. It is not a stock to invest in. CVS and Walgreens are trying to diversify (get out of pharmacy business, although they wont admit that) but at least they have some resources to do that.