Rite Aid: Why No One's Buying

The Rite Aid (RAD) nightmare continues for shareholders as the stock has just continued to drop further and further, now down close to 50% since the store deal with Walgreens (WBA) was announced. RAD investors have been expressing some hope of a private equity takeover or some other suitor coming to buy the company, but the reality is this: no one's buying Rite Aid. I mean this as double entendre: no one's buying RAD shares and no one's buying Rite Aid the company. This is a lame duck in short term and I continue to think investors are suffering an unnecessary opportunity cost and wasting their capital's potential by staying long RAD.

ChartRAD data by YCharts

I'll address two topics in this article: 1) Why investors aren't buying RAD shares and 2) why no suitors will buy Rite Aid the company. There's some overlap, but I think there are benefits to discussing both separately. Let's start with 1).

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