Is Rite Aid Corporation (NYSE:RAD) Stock Still A Low Risk Merger Arbitrage Play At $8.38?

- December 16, 2016

rad-stock-merger-profitBNL Finance already declared victory on the Walgreens Rite Aid merger. It’s happening, and no one, I mean no one pumped this deal and the merger arbitrage investment opportunity in Rite Aid Corporation (NYSE:RAD) more than us.

This includes 20 articles since June pleading with investors to see the opportunity in RAD stock — especially as it begun to fall in October — and if you look back further I have personally written 100s on Rite Aid stock since it was $1/share.

Yea I guess you could say I feel like a proud father who just nursed his problem child through college. Now it is time to relax. But first, this party is not over!

Rite Aid stock is currently trading at $8.38/share. Walgreens Boots Alliance (NASDAQ:WBA) is buying Rite Aid Corporation at $9/share, all cash. This means there is still upside of 7.4%.

Now generally I am not one to count pennies, but given the “assault on Wall Street” that BNL Finance expects to pursue after the S&P 500 hits 2,400, one could make an argument that every penny counts in 2017.

RAD stock & the keys to success in 2017

Nonetheless, the strategy headed into 2017 (before the correction) and beyond is really simple.

First, short bonds of all flavor. Second, watch bonds as a means to determine when the correction is near and when it is over. Third, hold tons of cash and be opportunistic. Fourth, own high quality yield stocks and undervalued value stocks that will outperform. And fifth, take your 7.4% gains in RAD stock.

The bottom line: You best believe that Rite Aid stock is STILL a key component to a winning portfolio in 2017.

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