UPDATE ON RITE AID BUYOUT BY WALGREENS BOOTS $RAD $WBA $FRED

UPDATE ON RITE AID BUYOUT BY WALGREENS BOOTS $RAD $WBA $FRED

This post was just published on ZYX Buy Change Alert.

 Totally contrary to its prior statements, WBA has reduced the buyout price for RAD from $9 per share to $7 per share if fewer than 1000 stores are required to be divested and to $6.50 if 1200 stores are required for divesture.  If divesture falls between 1000 and 1200 stores, there will be a pro-rata adjustment.  The date of the agreement has been extended to July 31, 2017.

There are two separate and distinct RAD positions.

What To Do Now

The long-term position is from $4.95.  Profits have been taken on all but 15% of the position.  Consider taking profits on another 5% right here around $5.73 and continue to hold the remaining 10% with a stop in the zone of $4.73 to $4.88

The buy zone for the Trade Around Position was $6 to $6.70.  After publication of the post it quickly dipped to $6.61 and then ran over $7.00 in the after hours.  The call was to buy a maximum of 20% of the full core position size.  Per Trade Management Guidelines, most of the accumulation should take place in the lower half of the buy zone.  There is a tranche of 5% of the full core position size from $$6.61.  This is now at a loss as the stock gapped down lower.  The stock is sitting right at the top band of the stop zone.  Consider not adding more at this time and since the main defense here is a very, very small quantity, consider lowering the stop to $4.73 to $4.88.  Unless there is news of the Justice Department blocking the buyout, the tentative plan is to add 10% in the zone of $5 to $5.37.

You are receiving less than 2% of the content from our paid services …TO RECEIVE REMAINING 98%, TAKE A FREE TRIAL TO PAID SERVICES.

Please click here to take advantage of a FREE  30 day trial.

Check out our enviable performance in both bull and bear markets.

FREE: SUBSCRIBE TO ‘GENERATE WEALTH’ NEWSLETTER

Related Posts

A NEW TRADE AROUND POSITION ON RITE AID $RAD $WBA $FRED

This post was just published on ZYX Buy Change Alert. This is a short-term trade, not an investment for aggressive traders as the ...

RITE AID BUYOUT BY WALGREENS BOOTS IN TROUBLE? WHAT TO DO NOW WITH WALGREENS BOOTS, RITE AID AND FRED $WBA $RAD $FRED $CVS

This post was just published on ZYX Buy Change Alert. WBA is long from $29.60.  As of this writing it is trading at ...

RITE AID RUNNING UP ON RUMOR, UPDATE ON BUYOUT $RAD $WBA $KR $CVS

This post was just published on ZYX Buy Change Alert. RAD is long from $4.95 and is trading at $7.81 as of this ...

UPDATE ON RITE AID BUYOUT BY WALGREENS AND WALGREENS EARNINGS, NEW RITE AID BUY ZONE $RAD $WBA $KR $CVS

This post was just published on ZYX Buy Change Alert. WBA is long from $29.60.  As of this writing it is trading at ...

RITE AID RIPPING ON WALGREENS BOOTS UPDATE, KROGER SPECULATION $RAD $WBA $KR $CVS $SFM $WFM

This post was just published on ZYX Buy Change Alert. RAD is long from $4.95.  As of this writing it is trading ...

A BLUE CHIP EUROPEAN BANK THAT HAS PERFORMED BETTER THAN AMERICAN BANKS AFTER BREXIT $HSBC $BAC $C $JPM $BCS $DB $SAN $WBA

After the Brexit vote, European banks were hammered. American banks held up comparatively well as the prevailing wisdom is that ...

UPDATE ON RITE AID BUYOUT BY WALGREENS BOOTS ALLIANCE $RAD $WBA

This post was just published on ZYX Buy Change Alert. RAD is long from $4.95.  As of this writing it is trading ...

A LUCRATIVE OPPORTUNITY IN RITE AID POST WALGREENS BOOTS BUYOUT OFFER $RAD $WBA $CVS $WMT $KR

This post was just published on ZYX Buy Change Alert.  RAD is long from $4.95.  The stock is trading at $7.90 as ...

UGLY CHARTS MAY MAKE FOR PRETTY INVESTMENTS $RAD $SAN $WBA $CVS $KR $WMT

I first wrote about a strategy I use when finding beaten-down stock in a February 2014 column titled “An Evergreen ...

UPDATE ON RITE AID $RAD

This post was just published on ZYX Buy Change Alert. The new buy zone for RAD is $5.20 to $6.50. Our first target ...

GET AHEAD OF SUPREME COURT ON OBAMACARE, TAKE PROFITS AND REVIEW HEALTHCARE POSITIONS $CYH $THC $RAD $WBA $MOH $CNC $PRGO $MYL #OBAMACARE

This post was just published on ZYX Buy Change Alert. The Supreme Court is likely to make a ruling on Obamacare this ...

STRONG EARNINGS FROM RITE AID BUT A BUYOUT IS THE LURE $RAD $CVS $WBA $KR

This post was just published on ZYX Buy Change Alert. RAD is long from an average of $4.96.  As of this writing ...

BUYOUT RUMORS ON RITE AID $RAD $CVS $WAG $KR

This post was just published on ZYX Buy Change Alert. RAD is long from an average of $4.96.  As of this writing ...

RITE AID PIVOTS FROM A TURNAROUND STORY TO A GROWTH STORY $RAD $CVS $WAG

This post was just published on ZYX Buy Change Alert. RAD is long from an average of $4.96 and 60% of the ...

TAKE PARTIAL PROFITS ON RITE AID $RAD

This post was just published on ZYX Buy Change Alert. RAD is long from an average of $4.96 and 70% of the ...

TWO DRUG STORES TO BUY DESPITE THE MARKET BEING HIGH $RAD $WAG

The stock market is near all-time highs, and this poses a challenge for the long-term conservative investors in stock selection. ...

UPDATE ON RITE AID $RAD

RAD moved up thus allowing to lighten up on this position in strength.  The new buy zone is $3.11 to ...

UPDATE ON RITE AID $RAD

This post was just published on ZYX Buy Change Alert. Our mental stop on RAD was under $4.43 and yesterday it ticked ...

A NEW IDEA ON RITE AID $RAD

This post was just published on ZYX Buy Change Alert. RAD is a drug store chain.  The stock is being taken to ...

Follow

Get every new post delivered to your Inbox

Join other followers