Wednesday, February 25, 2009

Pick Six!

Gents good evening. Step one, it seems, is for each of us to fling out our picks. Then, I guess we'll take the pieces that we like back to our drawing board, formulate the perfect mix of this and that and then mash them together in a buying effort.



The slice of the pie I suggest we bite into is an East Coast powerhouse in their sector. They have a presence in nearly every community from Manchester to Miami and sell products that we all use. The company, however, is in turmoil. Their shares have fallen over 90% this year, lowlighted by a 35% dip in just the last three months. They have over 5,000 locations and 60,000 employees, but they fell below analysts expectations for yet another quarter. I present you, Rite Aid (RAD).

Without going too wild on this forum, I think Rite Aid is a nice little play for even $12.50. That will grab us 50 shares. It's a risky stock, but we can afford to roll the dice for such little cash down. In a perfect world, a major player (CVS, Walgreens, Longs, etc.) scoops up the company, rewards the remaining shareholders with cash or with shares (ie- Countrywide to BAC) and we win. Worst case, we're out a week's worth of coffee money.

Looking forward to the moves you guys want to make and we'll touch the plate this weekend.

2 comments:

Jimmy C said...

Folks - my pick has not changed since our last meeting - i still like Activision Blizzard (ATVI).

I'll save the spheel - you can reference my prior posts for details on why i think its a good buy.

Apparently the just inked a deal to publish a video game based on last years toy of year Bakugan.

http://finance.yahoo.com/news/Activision-Publishing-and-prnews-14449622.html

This has the potential to be another solid hit to add their line. If we are gonna make a move on ATVI we should do it before end of March (GH Metalica release date).

Couple admin items to close. Pay up if you haven't already. Are we still having a conf call tomorrow?

11:00 am?

Money187 said...

So... conference call when?