Author Topic: RCII - Rent-A-Center  (Read 15490 times)

MrB

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Re: RCII - Rent-A-Center
« Reply #60 on: May 02, 2018, 12:24:48 PM »
Also Fadel reduced 250 positions or 25% of corporate office and in the field they cut 60 positions. Cannot think it makes him popular, but I don't think one can say Fadel is dragging his feet.

Overall the numbers impress, but the speed is what was remarkable. They still have a lot of hard work ahead of them, but it is a great start.


LowIQinvestor

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Re: RCII - Rent-A-Center
« Reply #61 on: May 09, 2018, 09:15:50 AM »
Anyone have a copy of the recently released SumZero write-up (LONG) on this?

I saw the preview :    unlevered 15% FCF yield, Michael Burry "ick stock" , potential sale in Q2.

thanks in advance!

Sunrider

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Re: RCII - Rent-A-Center
« Reply #62 on: May 09, 2018, 12:46:26 PM »
Anyone have a copy of the recently released SumZero write-up (LONG) on this?

I saw the preview :    unlevered 15% FCF yield, Michael Burry "ick stock" , potential sale in Q2.

thanks in advance!

I would be very interested in this (and grateful) as well. Please send PM.

Thank you!

Snorky

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Re: RCII - Rent-A-Center
« Reply #63 on: May 09, 2018, 04:52:16 PM »
So do I...thanks a lot :)

LowIQinvestor

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Re: RCII - Rent-A-Center
« Reply #64 on: May 15, 2018, 06:56:09 AM »
FYI: Arlington Value added a tiny bit to Rent-A-Center

http://www.dataroma.com/m/holdings.php?m=AV

BeerBBQ

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Re: RCII - Rent-A-Center
« Reply #65 on: May 16, 2018, 05:56:28 AM »
Anyone have any thoughts on why the short interest is so high?  Is there a technical reason, an uniformed view, or is it fundamentally driven (structural, valuation, fraud, etc.)?

With the largest holder (Engaged) having significant influence in the Boardroom on the strategic alternatives process to either fix the business themselves or sell it (with that process set to conclude in at most 1.5 months) and at least 1 party that has repeatedly expressed interest in buying the company outright (Vintage - put money where there mouth is with a 5.9% position at $9.96/share and an all cash offer of $13/share), what is the perspective of fundamental shorts here?

Is it that they believe the business is fundamentally broken and can't/won't be fixed/sold. If so what is the basis for that rationale?

or is it that nobody will buy the company at prices >$10?

What else?

If it isn't fundamental, what is the technical reason for such a large short position?


 



given2invest

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Re: RCII - Rent-A-Center
« Reply #66 on: May 16, 2018, 06:24:23 AM »
Yes. Levered beast and a terrible business that has not been performing well over the medium term.

Engaged has a bad track record and doesn't have a lot of cred so I wouldn't hang your hat w/ them.  I'm in TIVO and they are also involved there but only own 2% of the company there.
« Last Edit: May 16, 2018, 06:25:59 AM by given2invest »

BeerBBQ

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Re: RCII - Rent-A-Center
« Reply #67 on: May 16, 2018, 06:47:52 AM »
Yes. Levered beast and a terrible business that has not been performing well over the medium term.

Engaged has a bad track record and doesn't have a lot of cred so I wouldn't hang your hat w/ them.  I'm in TIVO and they are also involved there but only own 2% of the company there.

I am not familiar with EC's track record. Are you referring to investment results, their success in activism, or both?  Any details would be helpful.



flesh

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Re: RCII - Rent-A-Center
« Reply #68 on: May 16, 2018, 09:16:31 AM »
Short thesis is that ANOW and Aaron's version of ANOW (progressive) are cannabalizing sales of core RTO. If you can pay a normal price and get anything at any furniture store (plus heinous fees) as opposed to paying a huge markup up front plus heinous fees, why wouldn't you?

I'm thinking that these customers aren't often so careful but some are.

Also, Anow or progressive can't survive wo being able to resell at core locations.

« Last Edit: May 16, 2018, 10:18:15 AM by flesh »

LowIQinvestor

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Re: RCII - Rent-A-Center
« Reply #69 on: May 16, 2018, 09:53:43 AM »
The company seems to be way ahead in their turn-around strategy: ( if SHORTS are wrong this is a Volkswagon/Porsche type short squeeze in the making)

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NjkzODI4fENoaWxkSUQ9NDA1MDc3fFR5cGU9MQ==&t=1

Raised 2018 FCF guidance from $120M to $170M

For the three months ended March 31, 2018, the Company generated $84.5 million of cash from operations, ended the first quarter with $81.4 million of cash and cash equivalents, and reduced its outstanding debt balance by $77.6 million. Subsequent to quarter end, debt on the revolver was reduced to a zero balance as of April 30, 2018.