Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of retail drugstore chain Rite Aid
So what: Before you get too excited, please note that Rite Aid is retiring $459 million worth of notes due in 2015 by offering $481 million worth of notes due in 2020. Rating agency Fitch has already rated this new offering with a grade of CCC/RR5, which implies that credit risks remain high. Fitch maintained its outlook of negative on Rite Aid.
Now what: Even if the ratings agencies couldn't hit the broad side of a barn during the credit crisis, I wholeheartedly agree with Fitch on Rite Aid. Although same-store sales have been rising, Rite Aid still hasn't figured out how to turn a profit. That's not a problem for drugstore juggernauts CVS Caremark
Craving more input? Start by adding Rite Aid to your free and personalized watchlist so you can keep up on the latest news with the company.