Victhom

Cramer's Mad Money - 10 Reasons to Believe the Nasdaq Rally (6/8/09)

www.reuters.com/articl...

FACTBOX-Biggest changes in Nasdaq short interest
Tue Jun 9, 2009 4:16pm EDT
YORK, June 9 (Reuters) - Short interest on the Nasdaq rose 3.6 percent
in late May, the exchange said on Tuesday, suggesting bearish sentiment may be
creeping back into the stock market after a three-month rally

Jim Cramer's Mad Money In-Depth, 1/16/08: Easy as ADC

Hey Jim have you heard that Rite Aid (RAD)was a takeover target at $3.50???

Read this....
The Capital Research analyst, stated that the title of Jean Coutu Group may rise sharply if Rite Aid (NYSE: RAD), American Chain Drug Stores, owned 31.7% by Jean Coutu Group, was acquired.

As I mentioned Jean Coutu Group holds 31.7% of Rite Aid or approximately 252 million shares, which closed yesterday at Cap $ 2.2 Americas. The real value of the investment is approximately 560 million Americans.

What nobody said it and the problem is the following is that the same shares of Rite Aid worth $ 6.38 to June 29, 2007.

In other words, in six months, the placement du Groupe Jean Coutu melted like snow in the sun. The course is worth 3.5 billion American (3731 billion Canadian), the investment has grown to 560 million US-dollar (565.54 million).

What was the actions of the Jean Coutu Group 6 months ago? At the same time placing Rite Aid worth 3,731 billion Canadian, or at June 29, 2007, shares of Jean Coutu Group worth $ 15.50.

So in closing price yesterday, while the placement du Groupe Jean Coutu in Rite Aid founded nearly 85% (in Canadian currency), the shares of Jean Coutu Group lost almost 28%.

Some analysts believe the US drugstore chain Rite Aid could be acquired by a competitor. Assuming that possibility and the purchaser would pay approximately $ 3.50 reflecting a fairly reasonable premium of nearly 45% over the closing price yesterday of $ 2.22.

If this situation took place, the Jean Coutu Group therefore receive 789 million Americans for all its shares of Rite Aid.