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

By Douglas A. McIntyre Updated Apr 28, 4:15AM EDT · Published Mar 9, 8:06AM EDT

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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

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.