Like I said, the earnings release has statements from management that make you believe everything is proceeding smoothly. Hey, maybe everything is going to plan. Perhaps Rite Aid is indeed the proverbial diamond in the rough.

Excuse me, though, for being skeptical. At least from an investor viewpoint. At this point in time, I still see the shares as nothing more than lottery tickets. If you look at the performance stats at AOL Finance, you'll see that the stock is up something like over 80% in the last month (at the time of this writing, at least). So, if you had taken a roll of the dice, you'd be pretty happy at this moment.

Just remember, though, that taking a roll of the dice and winning means that you can just as easily take a roll of the dice and end up losing. What I'm trying to say is that Rite Aid is simply a volatile stock whose incredible jumps may not necessarily be indicative of great progress. The market's been very bullish lately, so naturally some equities are going to come along for the ride. When I consider the loss for the quarter, the loss for the fiscal year, the quality of the comps, Rite Aid's position against competitors CVS Caremark and Walgreen, and the fact that the stock price is so low that management wants a reverse split, I come away not feeling very confident in this particular investment idea. I've just never been one to go after tough turnaround situations. To the others who do such investing, best of luck. As for me, I'll continue to stay away from Rite Aid.

Disclosure: I don't own any company mentioned; positions can change without notice.