Author Topic: RCII - Rent-A-Center  (Read 12335 times)

given2invest

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Re: RCII - Rent-A-Center
« Reply #70 on: May 16, 2018, 02:09:48 PM »
I love when everyone references Volkswagen/Porsche in a crowded name.  There were very specific reasons for that squeeze and it was a pair trade - this has none of those qualities. 

I spent some time looking at Engaged portfolio and their investment success.  I was not impressed.  They have had some success in selling companies - and some failures.  But if you look at their core portfolio now, HAIN, RCII, TIVO - they have lost a lot of money on all of them despite market up huge.

Re turn-around strategy working - I have no view.  But I do know that consensus is if this ends w/o a sale - the stock will go down - A LOT.  So please keep that in mind as you invest for the coming weeks.

I am not short, not long obviously.


odin

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Re: RCII - Rent-A-Center
« Reply #71 on: May 17, 2018, 05:33:50 AM »
agreed given2...the business is poor and its a levered pig.  It's only generating cash bc inventory is being liquidated.

Note that Marcato bailed.  They were involved with Engaged initially.

No position.

LowIQinvestor

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Re: RCII - Rent-A-Center
« Reply #72 on: May 17, 2018, 08:07:02 AM »
I love when everyone references Volkswagen/Porsche in a crowded name.  There were very specific reasons for that squeeze and it was a pair trade - this has none of those qualities. 

I spent some time looking at Engaged portfolio and their investment success.  I was not impressed.  They have had some success in selling companies - and some failures.  But if you look at their core portfolio now, HAIN, RCII, TIVO - they have lost a lot of money on all of them despite market up huge.

Re turn-around strategy working - I have no view.  But I do know that consensus is if this ends w/o a sale - the stock will go down - A LOT.  So please keep that in mind as you invest for the coming weeks.

I am not short, not long obviously.

Puts seem to be very cheap if what you say is true.

LowIQinvestor

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Re: RCII - Rent-A-Center
« Reply #73 on: Today at 07:30:36 AM »
For the record:

I think something material happens in the next 2 weeks  8)

given2invest

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Re: RCII - Rent-A-Center
« Reply #74 on: Today at 09:27:46 AM »
I love when everyone references Volkswagen/Porsche in a crowded name.  There were very specific reasons for that squeeze and it was a pair trade - this has none of those qualities. 

I spent some time looking at Engaged portfolio and their investment success.  I was not impressed.  They have had some success in selling companies - and some failures.  But if you look at their core portfolio now, HAIN, RCII, TIVO - they have lost a lot of money on all of them despite market up huge.

Re turn-around strategy working - I have no view.  But I do know that consensus is if this ends w/o a sale - the stock will go down - A LOT.  So please keep that in mind as you invest for the coming weeks.

I am not short, not long obviously.

Puts seem to be very cheap if what you say is true.

You're right...option prices are odd - very low implied vol given the event is imminent.  Still have no interest but that's odd.  I think the likely outcome is a sale at/near current prices.

LowIQinvestor

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Re: RCII - Rent-A-Center
« Reply #75 on: Today at 12:51:30 PM »
I love when everyone references Volkswagen/Porsche in a crowded name.  There were very specific reasons for that squeeze and it was a pair trade - this has none of those qualities. 

I spent some time looking at Engaged portfolio and their investment success.  I was not impressed.  They have had some success in selling companies - and some failures.  But if you look at their core portfolio now, HAIN, RCII, TIVO - they have lost a lot of money on all of them despite market up huge.

Re turn-around strategy working - I have no view.  But I do know that consensus is if this ends w/o a sale - the stock will go down - A LOT.  So please keep that in mind as you invest for the coming weeks.

I am not short, not long obviously.

Puts seem to be very cheap if what you say is true.

You're right...option prices are odd - very low implied vol given the event is imminent.  Still have no interest but that's odd.  I think the likely outcome is a sale at/near current prices.

Something must have leaked ahead of the annual meeting. :-X