A buddy of mine bought 25K shares of this thing a few weeks back at $3ish. I told him Monday.... "sell 250 contracts of the July $4 calls at $.60". Did he listen to Zandy? Nooooo. "Oh they might get called away... this thing is going to $8". Looks like he just missed out on $15K. Not answering my phone calls this AM .
big deal. he could have just as easily sold his shares and made 25k. maybe thats why he doesnt answer the phone. you gave him bad advice. ps, id like an accounting of how much the dweebs out there lost trading this long in the last year. seems to have attracted lots of them
I didn't give him bad advice. There was no way he was gonna sell those things regardless of what I said. Thats why he refused to sell the calls. He was greedy and just "knew" they were going to $8. If he'd have listened to me he'd at least be up 15K.
You should have given him advice that protected his upside to some extent. doesn't matter , sounds like a gambler
Which is funny because the revised takeout was for 6.5 - 7 depending on what the antitrust remedy was.
Yeah.... just on the phone with the guy. He actually has 32K shares. I'm reading up on this thing right now, I have not followed the story other than today. It looks like the FTC won't be able to block the new deal with half the stores (?). Whats your opinion here?
It will certainly strengthen up RAD's balance sheet. They paid 109M in interest on 7B debt this quarter. Much of that debt is above 6%... that will be retired with the sale. Also, according to the CEO they are retaining the more profitable stores. Lots of rumors flying... of course people are saying AMZN could step in, which is laughable imo. No one has said this, but maybe Krogers could buy the remaining 2000 stores. They were on the short list (as I recall) with Freds when the deal was first announced to appease the FTC. Krogers needs to do something to grow earnings... obviously they can't do it organically. Its not too far of a reach really. Who knows. Time will tell. He's not selling his shares though. I agreed, but its not my money lol.
I don't know if it's a good deal for them to sell 1/2 their stores for 1/2 their enterprise value. Normally that should go for a significant premium.
Yeah ya know.... they say when somebody is drowning they'll grab hold of anything. It'll be very interesting to see how this plays out. I'd imagine a lot of today's volume was arbs running for the exits. There's a lot of big players holding this thing. http://www.nasdaq.com/symbol/rad/institutional-holdings You can bet this weekend will have some secret phone calls/rounds of golf.... I expect strong media bias to the "buy" side next week. Those 7/28 $3 calls at .17 (possibly less tomorrow) might be a good lottery ticket.