Rite Aid Not The Right Prescription In Drugstore Stocks

Rite Aid (RAD) is not a stock to own right now. Bullish investors and analysts have focused on the aging U.S. population, the increasing sales of higher margin generic drugs, and the many newly insured potential customers as factors creating growth potential for RAD. The stock is up over 150% this year, and David Einhorn's Greenlight Capital recently disclosed a $70 million long position. Lost in the excitement, however, are some significant competitive issues and long-term liabilities that make...