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Rite Aid (RAD – 3-3/16) is the third-largest pharmaceutical retailer in the United States. The security has endured a tumultuous two years, collapsing nearly 94 percent since January 1999. Needless to say, the stock is perched below all of its moving averages.
Shortly before the open this morning, RAD officials announced a second-quarter loss of $1.87 per share, down significantly from 1999's second quarter, when the firm lost 60 cents per share. This number was also significantly below the Street's expectations, as analysts' estimates ranged from a loss of 17 cents per share to a loss of 50 cents per share. Also wounding the shares was news that the company plans to relocate or open 75 stores in 2001, down from the 90 originally planned.
On the upside, the company announced that same-store sales for the quarter rose 9.9 percent over last year. This nugget of information was not enough to stave off a drubbing, however. In mid-afternoon activity, RAD shares are trading over 20 percent lower.