Rite Aid Corp. (RAD)
Management at Rite Aid Corporation (<a href=http://www.zacks.com/stock/quote/rad>RAD</a>) was executing a turnaround strategy centered on increasing the profitability of the existing store base. <p> However, the acquisition of Brooks Eckerd prior to a convincing turnaround in profitability has increased the debt burden and interest expense. Moreover, Wal-Mart's foray into the retail generic drug market has pressured the company's pharmacy margin. <p> Given the weakness of front-end sales, especially in the past fiscal year, and management's continual lowering of EPS guidance (for larger net losses), the stock's rating is a Sell.
June 28, 2009 | Filed Under Stocks to Sell
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