Rite Aid (RAD) is a company ripe with rumors and speculation. After the latest merger deal failed, the stock has been on a steady downfall. Investors are now stuck with the proposition on whether the company can survive on its own or whether the firm may be picked up by a private equity firm to save the day.
In my last article, I advised readers to wait longer before buying shares of Rite Aid. Shares were trading around $2.70 at the time of publication. I received quite a bit of opposition for making this recommendation – but readers who listened to the recommendation benefited. With that being said, those investors possessing a larger risk appetite should look to initiate a speculative long position soon. The old adage of “buy low sell high” applies here because the Rite Aid trade is simply playing out as expected. Shares are getting cheaper by the day – exactly as I had predicted. It is getting to the point where the tip of the scale is shifting, shares are almost getting too cheap.