Rite Aid Yells 'Do Over!' on Reverse Split (RAD)

Retail

Published: March 9, 2009 8:06 am

Last Updated: April 28, 2020 4:15 am

Rite Aid Corp. (NYSE: RAD) may be hoping that its $0.22 share price won’t be as important down the road as it would have been when the NYSE was actively delisting companies because their shares were under $1.00. The company’s prior plan for a reverse stock split is being “delayed” now that the NYSE has suspended its minimum price share listing rule.

The good news is that the terms of the split were not set. It is either a reverse split of “1 for” 10, 15, or 20. The bad news is that nothing else is changing. There has been no improvement in the company which would lead us to believe that Rite Aid has a bag of tricks can be used to elevate those shares.

The company said that it now has additional time to become compliant with the rule. That $1.00 rule may not come back for quite some time because there are so many stocks are trading well under $1.00 that volume would disappear. But “time and flexibility” may be a stretch. This stock would have to rise 400+% to get back to $1.00.

JON C. OGG

Are You Still Paying With a Debit Card?

The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.

Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!

Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!

Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.