$RAD Is A Speculative Bounce Play

RAD is one which we nailed the move higher. Now that the stock has come back down, we believe it's a speculative bounce play here. Although you will want to give it some room as the stock could drop to the $9 to $10 region and bounce from there. That's why RAD is one that you dip your toe in at current levels.

Right now RAD is a bull/bear battle and is dependent on management executing a turnaround. WBA delivered disappointing earnings yesterday, so the drugstore sector has its challenges. However, they are everywhere and people still shop in them. We believe RAD will eventually get back into the 20S and deliver 100% gains for those that are patient.

Keep in mind that shorts are heavily exposed as 27% of the float has been sold short. It won't take much to get a short-covering rally going.

Rite Aid Corporation, 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. Rite Aid Corporation was founded in 1927 and is headquartered in Camp Hill, Pennsylvania.

As always, use protective stops and trade with caution.

Good luck to all!