Rent-A-Center, Inc. (NASDAQ:RCII)

Money magazine recommendation. Seems undervalued and should be around $40.

valueline

If and when the global economy recovers, consumers will flock back to purchasing material goods over renting. As of now it may be a good buy, however, in the event of significant economic recovery and job creation, consumer goods will be purchased.

Speculating: (Value Play)
Schwab A; Reuters Buy

good

COMPANY IS SLOW TO RESPOND TO CUSTOMER NEEDS AND MORE PEOPLE RIP THEM OFF THEN ACTUALLY PAY FOR THE PRODUCTS

Google the phrase Zacks Releases Four Powerful ''Buy'' Stocks, if you trust Zacks these may return at or near 26%

Rental companies tend to do well in poor and stagnant economies. they pick up business as people become thin on credit.

Losing market share to competitors like Aaron's Rents. Old management slow to react to changing times.

People are afraid to make commitments to buy. Makes sense to me.......

This is 100% simple ecominics. With the credit being harder to get and the low low prices of renting, it makes sence that this stock would do well as well as the company.-Side note- If you have read about some of the lease deal BMW/Audi(370$ a month) are giving out thats a sign that renting is the way to go for the near future. If major car builder are making more money off a lease than a sell there is no wonder that Rent-a-Center is doing well also.
But hey im a Fool aren't I..

In the current economy, more people are inclined to rent if they can't buy. This is good for their rental business but bad for their same-store sales...still, I think their rental numbers will be up...Super Bowl coming...

RENT TO OWN ITS SUCKS

Rent a center's largest customer base are people with marginal credit scores. These are the same folks who are defaulting on consumer debt. I am wagering that for the forseeable future rent a center's repossessions will outperform it's new rentals. Does anyone appreciate the irony of rent a center itself being repossed by creditors....1.25 BILLION in long term debt!! Ouch!!

Another excellent short opportunity. Conventional wisdom says these businesses do well in down economy, but times change and these are not conventional times. These types of businesses will be the next domino in the financial sector going into summer 08 as belt-tightening and personal credit woes impact this stock in a big way.

Credit crunch and bad economy add up to more renters. Stock missed guidance by a penny and got hammered.

THE ONE YEAR MARK OF THE RENTWAY CONVERSION WILL MAKE INVESTORS EAGER TO LOCK ON. LOOK FOR THIS STOCK TO BE OVER THE $50 MARK BY THE END OF THE FIRST QUARTER 2008.

Rent-A-Center operates rent-to-own stores, which offer furniture and accessories, consumer electronics, appliances and computers to customers under flexible rental purchase agreements, thereby allowing ownership to customers at the end of the agreed rental period. The company operates a total of 3,048 stores as on September 2006 of which 297 are franchises. It is the largest player in this highly fragmented industry after acquiring the third largest player Rent-Way in August 2006.

The revenue growth of the company has been quite weak over the past few years; it increased by mere 1.25% during the last 9 months. This poor show can be attributed to the easy availability of credit facilities, which enables the customers to own the appliance, rather go in for a staggered rental owning. On the contrary the costs incurred by the company to generate this revenue is increasing and thus the earnings are getting negatively affected. Of the total revenue furnitures and accessories segment contribute about 38% and consumer electronic 34%.

The acquisition of Rent-Way has given the company complete dominance in the sector, but as part of integration operations they plan to close down about 20% of stores. This action will affect the revenue as comparable store sales contribute a major portion of revenues. The company is introducing initiatives like PayDay Loan, a credit service to attract customers as credit availability is becoming easier. The competition is also becoming intense with the nearest contributor Aaron Rents growing by 19% during the past 9 months suggesting that the company is not able to keep up with changing time. The effect of the new initiatives and acquisition will take some time to reflect in the operational performance of the firm, till then, the stock is likely to under perform.

The restructuring will provide more value in the months to come