ALERT RAD TRADER

With an incredible 16.94% short interest, RAD is now almost the most shorted stock.

Simply incredible and still one question unanswered? Who is benefitting from this ?

Is this Cerberus?

No matter who is behind that, there is a real danger here of having some kind of a squeeze and at this level, it could get ugly.

Even the worst one (CHK) has a 5.02 ratio so at this level RAD shorter are one a dangerous course.

Wow

ALERT RAD

Based upon trading today, RAD ended up the over major moving average.

IF this was not the usual trap (we should see early on tomorrow) it could indicate a couple of things:

1) Next stop should be around 2,04$ enroute toward the 2,48$ planned value at the merger announcement

2) If volume picks up, then it could also mean that they are revisiting the deal value to increase the % Rite Aid shareholders would get in case the merger is approved.

Lets bring in tomorrow and check that out.

Have fun 

RAD buying pressure

Very interesting to see some nice buying pressure even if volume is not there actually. So i would stay prudent about this reaction the day after analyst conference.

If it closes over 1,70 expect a run toward 1,94 if this is not another trap setup.

Let see if actual short interest stays at 15,15 (one of the highest in the market)

MEG (Meg Energy TSE)

Have you seen their last earning report^

Well, this is another great pick recommended some time ago.

It is actually at the high end of the chart, so expect some retracement BUT with actual oil price, the next quarter should be at least as good as this one.

Always a good time to get some profit off the table for the next interesting play to come. 

Rite Aid analysts call today

Very interesting to see that much interest in the merger without any influence on the market share price.

The rational for the merger is ok to me BUT the problem is the % owned by actual stockholders as an end result.

Other interesting factor to consider: short interest.

How in the world short interest does not stop going higher? As of this morning it is standing at 14,95% short interest. At this rate, there will not be any share available soon to short!!!

But who is benefiting from that short interest and who could possibly do it?

Rules actually are about 2$ in value to short 1 share. So who is able to use over 200M$ simply to short a 1,64$ dollar company?

Who is benefiting from this?

I really hope that Cerberus is not behind that short attack that has ruled for more than a year now hoping to gain traction in the price rational.

If not them? Who is behind?

Hard to believe that a 2,50$ stock (based upon value post merger and rounded) + 18 cents per share cash, is still trading at 1,64$.

This is purely non sense and so far i still recommend to vote NO to this merger.

Also interesting to visit is the following site:

https://sites.google.com/view/voteno2merger

Rite Aid stockholder are angry

I have not commented about Rite Aid in some time now for one reason: giving time to review the proposed deal and hoping to get some news from Rite Aid.

Rite Aid has not done anything positive recently and details are still sketchy.

At this time my opinion is that i will vote against the merger as i feel the management is trying to reduce Rite Aid value to rumble at the same time that it smells like conflict of interest and a fire sale.

Am i alone to think this way?

Not at all, the number of shares shorted has increased dramatically and the short interest is at record high. Clearly, not many investors thinks this merger is a positive for Rite Aid.

Then this morning a site has just emerged: riteaidmerger.com

I think there will be some legal issues with this deal and RAD is not out of the wood actually.

Have i said volatility? Well this is not game over for RAD but expect very very high volatility.

Shame on management for the way this merger has been handled.