Rite Aid has been having a very rough time as of late, with many analysts initiating bearish price forecasts this year.
Yet following their reverse spit back in the summer, it was actually starting to look like a nice gamble, even in light of the company’s poor operating performance.
June 1, 2019, Fiscal 2020 First Quarter
If you had compared the stockholders equity to their market cap during that time period, it would’ve looked very undervalued, especially when you take into account the $10 billion in assets. Plus, this was the company’s first reverse split after several decades of being publicly traded.
Again though, just a nice gamble; nothing to bet the ranch on.