Long Position on RAD @ $15.00 on 3/30/2020 (Momentum)

Rite Aid Corporation (RAD), through its subsidiaries, operates a chain of retail drugstores in the United States.

The company operates through two segments, Retail Pharmacy and Pharmacy Services. The Retail Pharmacy segment sells prescription drugs and an assortment of other merchandise, including over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise, and other every day and convenience products.

It also operates retail clinics that provide treatment for common conditions; and provides preventative services, such as screenings, medical tests, immunizations, and basic physical exams. In addition, this segment offers healthcare coaching and disease management services.

The Pharmacy Services segment provides pharmacy benefit management (PBM) services and a range of pharmacy-related services. This segment also performs prescription adjudication services for other PBMs; and offers integrated mail-order and specialty pharmacy services, as well as drug benefits under the federal government's Medicare Part D program. As of April 11, 2019, the company operated 2,469 stores in 18 states.

As people continue to need medication, the retailer and pharmacy should continue to increase in revenue. Please see the chart.

Entry point: $15.00

52-week trade range: $5.04 - $23.88

Stop/Loss: $14.25

Target Price: $16.50

Updates

4/14/2020 1:52:05 PM

RAD closed at $15.65

Position closed on 4/14/2020 at price of $15.65 with a 4.33% gain in 15 days.

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