Rite Aid (NYSE: RAD): Under $5 Stock's Breakout Could Make Traders 80% Profits

What's the first thing that pops into your mind when you think of low-priced stocks? I know for myself, I think of untested, start-up companies that are full of promise, as well as risk. Generally trading on future promise, a strong management team and investor hype, many companies with stocks under $5 per share never grow into profitable long-term investments.
Start-up high-tech and biotech firms are the companies that typically fall into this category. One rarely thinks of an over 4,600-unit, brick-and-mortar consumer chain with stores across 31 states. However, this is exactly what my breakout stock screener recently discovered.
Fully expecting the price chart to belong to one of the typical low-priced suspects listed above, I was surprised to see that it belonged to household name Rite Aid (NYSE: RAD).
Rite Aid was founded in 1927 and is the third largest drugstore chain in the United States. Once upon a time it was a nearly $50 stock, but it was knocked down into the low-priced world due to a heavy debt burden and intense competition from CVS Caremark (NYSE: CVS) and Walgreen (NYSE: WAG).  (more)

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