RAD would be a natural fit for Eddie to take over as it holds many of the key . The company will be the third largest pharmacy chain right behind WAG and CVS once their acquisitions of Brooks and Eckerds is complete. The company has been in constant turnaround mode, missing earnings estimates every chance they get. That said, they trade at 10x cash flows, with synergies and cost savings ready to kick in once the acquisitions close. With a relatively small market cap (3.5 Billion) compared to its annual revenue (17.5 billion) and improving fundamentals Rite Aid is posed to move higher. Noted hedge fund manager Paul Tudor Jones of Tudor Investment Corp also has shown interest in RAD. Click here to view Paul Tudor Jones's portfolio. Also, what really encourages me is that hedge fund manager and retail specialist Hayground Cove owns the stock. We’ve encountered Hayground Cove, run by former Bear Stearns retail analys Jason Ader, several times in the past, particularly with DENN which was a huge success. RAD’s CEO Mary Sammons has also been getting much kudos as a turnaround specialist. Cramer features her in his Mad Money CEO Interviews portfolio.

Several other stocks make the distressed retail list that I think Lampert could make a play for, including Radio Shack (RSH) run by former K-Mart CEO and SHLD Director, Julian Day, who is in the middle of a massive turnaround at the electronics retailer. I wouldn’t be surprised for him to culminate his comeback with a return to his former home at SHLD where he could take over the reigns from Lampert so Lampert could move onto other endeavors (see next stock in this article). Once again we see our old friends from Hayground Cove in the stock as well as deep value investor (and another retail specialist) Robert Olstein who I’ve about in the past in the context of JAS, which I first wrote about when he started loading up at 14 and is now sitting pretty at 33. And I’m not the only one who thinks RSH could be a buyout candidate here. RSH makes Cramer’s recent buyout candidates list from a recent Mad Money. Click the above link for the rest of his buyout candidates, including MNST and HAL among others.

Several other stocks make the distressed retail list that I think Lampert could make a play for, including Radio Shack (RSH) run by former K-Mart CEO and SHLD Director, Julian Day, who is in the middle of a massive turnaround at the electronics retailer. I wouldn’t be surprised for him to culminate his comeback with a return to his former home at SHLD where he could take over the reigns from Lampert so Lampert could move onto other endeavors (see next stock in this article). Once again we see our old friends from Hayground Cove in the stock as well as deep value investor (and another retail specialist) Robert Olstein who I’ve about in the past in the context of JAS, which I first wrote about when he started loading up at 14 and is now sitting pretty at 33. And I’m not the only one who thinks RSH could be a buyout candidate here. RSH makes Cramer’s recent buyout candidates list from a recent Mad Money. Click the above link for the rest of his buyout candidates, including MNST and HAL among others.

- consistently distressed - cheap. trades for 5.6x EBITDA - overcapitalized balance sheet - 740mm cash and 57mm debt. can probably take on more debt and buy back shares - cutting $110mm in costs. Just announced cutting 800 jobs. - Down 43% YTD. Almost any good news will send this stock higher. Perfect distressed retail play for Lampert.

- Distressed insurance play - post bankruptcy

- distressed home-development retailer - stock is flat over two year period - trades for just 7.7x EBITDA - if housing recession is at a bottom this stock could see 20-30% pop from here over next year, particularly with new management in place.

From the NY Post: " Whispers in hedge fund circles last week had the notoriously tight-lipped Lampert eyeing Gap Inc., the embattled retail chain whose shares had been off over the past 12 months until a recent rally. Team Lampert refused to comment. Hedge fund manager Dave Nelson, of Nelson Asset Management, said of the Gap rumors: "This is both a real estate and retail play and a company that has lagged its peers on every measure." "

Another distressed retailer. Trades at just 7x cash flows. Pristine balance sheet with $174mm cash and no debt. Lampert's ex-Goldman buddy, Richard Perry, who runs Perry Corp, is a big shareholder.