Here's Why the Worst Is Yet to Come for Rite Aid Corporation

Rite Aid Corporation (NYSE: RAD) stock fell hard every time Walgreens Boots Alliance (NASDAQ: WBA) lowered its offer for the struggling pharmacy chain's retail outlets. Now that the deal is cleared for takeoff, intrepid value investors are being drawn toward what looks like a clear-cut opportunity. Based on Walgreens' final per-store offering price, Rite Aid's stores are worth several times more than the stock's recent market cap.

Although the arithmetic works out in theory, an uncooperative Federal Trade Commission and a rapidly deteriorating outlook for retail in general both limit the pool of potential suitors for Rite Aid's remaining stores. Without a buyer, there are reasons to believe a slimmed-down version of the company might become profitable. Upon closer inspection, though, it looks like the worst is yet to come.

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Source: Fool.com