Will Rite Aid End Up Like Blockbuster?

Late Wednesday night the expected merger between pharmacy company Rite Aid (RAD) and grocery chain Albertsons was called off ahead of Thursday's scheduled shareholder vote. Understandably, this caught many investors off guard even though a cohort of shareholders were less-than-enamored with the planned marriage of these two companies.

From my vantage point, I saw the coming together of Rite Aid and Albertsons as delivering cost synergies as well as helping ward off the looming pain points that each are poised to feel in the coming quarters. Absent those benefits, however, we have renewed uncertainty for Rite Aid shares, especially following a weaker-than-expected outlook from competitor CVS Health (CVS) earlier this week. Indeed, as co-portfolio manager of TheStreet's Stock Under $10 portfolio, we exited our RAD position this morning....636 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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