The turmoil in the markets makes it too easy to justify selling any stock these days. Yet, while even warranted, gut-wrenching panic can work against investors, it's still a good idea to play devil's advocate with investments.
Consider drugstore chain operator Rite Aid
Here at The Motley Fool, we like to consider both the good and bad sides of an investment, so in this article, I'm highlighting three of the main bearish arguments on Rite Aid today. Be sure to read the bullish side as well, and then weigh in with your own comments below or rate Rite Aid in CAPS.
1. Negative earnings
A number of reasons influence CAPS members' bearish calls on Rite Aid, but one that comes up repeatedly is the company's lack of earnings. With Rite Aid consistently ending up in the red and more competition from retailers such as Wal-Mart
2. Keeping the streak alive
3. Mountain of debt
After piling on debt due to its Brooks Eckerd acquisition, Rite Aid's balance sheet has put up many red flags that have caused some CAPS members to steer clear of its shares. While some companies like Medco Health Solutions
The Motley Fool Stock Advisor service looks for companies with strong management poised to beat the market over the long haul. To see all the stocks that have helped Tom and David Gardner beat the market by 55 points on average, take a free 30-day trial.
Fool contributor Dave Mock votes 3 to be the number of the day. He owns no shares of companies mentioned here. Costco and Wal-Mart are Inside Value picks. Costco and MedcoHealth Solutions are Stock Advisor selections. The Fool owns shares of Costco. The Fool's disclosure policy took fifth place in the cup-stacking contest at the annual fair.