| Company: | Rite Aid Corporation |
| Web Site: | http://www.riteaid.com |
| Purchase Price: | $1.45 |
| Current Price: | Click Here |
Rite Aid Corporation, the nation's second-largest chain of retail drugstores, has been struggling under the weight of recent acquisitions, and today announced a first-quarter loss of over $150 million, sending its price on a downward spiral.
While the company is experiencing a severe case of indigestion, my sense is they can survive: they have been in business since 1927, currently operate over 5,000 stores, and have revenue growth of nearly 50% year-to-year - and while the loss seems significant, it's nothing that an $11 billion dollar corporation can't handle.
The company is already in the process of streamlining its operations to eliminate redundancies and market cannibalization, and I fully expect that they will show signs of recovery by the end of this year, and should be back in the black before long - and while the stock will probably take a while to recover completely, I expect to turn a fair profit within the next six months.
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