What Super Investor Eddie Lampert Buys Now

Investor Eddie Lampert right now is just like Warren Buffett in 1968. Both ran successful hedge funds. Both made the transition from investor to operator. And both bought up distressed retail until finally moving into the next stage of their careers.

Lampert, however, is still in that transition phase.

In a Stockpickr column two weeks ago titled Trade Like Hedge Fund Honcho Eddie Lampert, I discussed his latest investments, all of which can be found on the Edward Lampert portfolio page on Stockpickr.

This week, however, I'd like to take a look at what Lampert, or his operating company Sears(SHLD Quote), could buy next. I've compiled a list on Stockpickr of Lampert Takeover Candidates, companies I believe he might take a position in or outright acquire.

First off is Rite Aid(RAD Quote), which would be a natural fit for Lampert to take over.

Rite Aid will be the third largest pharmacy chain right behind Walgreen(WAG Quote) and CVS(CVS Quote) once its acquisition of Brooks Eckerd is complete. The company has been in constant turnaround mode, missing earnings estimates every chance it gets.

	If Lampert had to pick one distressed retail stock to acquire for Sears, what should it be? Answer Here

That said, its stock trades at 10 times cash flows, with synergies and cost savings ready to kick in once the acquisitions close. With a relatively small market cap of $3.5 billion compared to its annual revenue of $17.5 billion as well as improving fundamentals, Rite Aid is poised to move higher.