Regis Corp (NYSE:RGS)

CAPS Rating: 5 out of 5 95.16

The Company owns, operates and franchises hairstyling and hair care salons throughout the United States, the United Kingdom, France, Canada, Puerto Rico and several other countries.

RGS News and Commentary

Caps

How do you think RGS will perform against the market?

Add Stock to CAPS Watchlist

All Players

71 Outperform
10 Underperform
 

All-Star Players

22 Outperform
3 Underperform
 

Wall Street

7 Outperform
0 Underperform
 

Top RGS Bull/Bear Pitches

The best Bull and Bear pitches based on recency and number of recommendations.

240247479 (< 20)
Submitted March 13, 2014

RGS is a leader in the highly-fragmented haircare industry whose primary business is owning and franchising hair salons. I would like to set the table with some investment advice from Warren Buffett: “We see change as the enemy of investments…so we… More

hansenrs (< 20)
Submitted October 24, 2007

I had a significant amount invested in Regis for about 8 years. They did great with a great lead in market share and seemingly unlimited opportunity for growth. Then they started making really strange decisions. The failed merger was just the final… More

RGS VS S&P 500 (SPY)

Fools bullish on RGS are also bullish on:

Recent Community Commentary

Read the most recent pitches from players about RGS.

Recs

2
Member Avatar 240247479 (< 20) Submitted: 3/13/2014 12:29:11 PM : Outperform Start Price: $14.30 RGS Score: -36.08

RGS is a leader in the highly-fragmented haircare industry whose primary business is owning and franchising hair salons. I would like to set the table with some investment advice from Warren Buffett: “We see change as the enemy of investments…so we look for the absence of change. We don’t like to lose money. Capitalism is pretty brutal. We look for mundane products that everyone needs.” There are few things more mundane than having your haircut 6-12x per year. The company sells a service that has experienced few, if any technological changes and cannot be outsourced. Regis enjoys some pricing power. I see the current negative trends (-SSS) as transitory rather than permanent. The Company is in the early innings of a turnaround, which is being spearheaded by a new leadership team and board. I see EBITDA margins “reverting” to more normalized levels (today: <5%, 10-year average: 10.2%) as management executes against its business turnaround plan. It should be noted that the Company’s franchisees comp positively and generate roughly $50,000 more per salon than a company-owned store (there is a lot of leverage to improved sales trends). RGS has a healthy balance sheet (net cash) and good long-term return characteristics (excellent FCF). Recently, there was significant insider buying. If the company is successful in improving its margins, then the equity is worth > $25 per share from ~$14.50 today. The primary risk is in the timing of the turnaround. After several years of disappointing results, RGS has become an orphan stock, unloved and under-followed by Wall Street pros.

Recs

0
Member Avatar seekinggotham (25.13) Submitted: 8/1/2013 12:27:16 AM : Outperform Start Price: $16.07 RGS Score: -122.34

this pick is a combo MF Special Ops pick and Starboard Value. The thesis was basically divesting non-core operations coupled with a stock buyback program or a special divi and driving greater profitability through better focus on core operations - once the non-core stuff was disposed of.

While some divestitures occurred, mgmt's been reluctant to initiate a buyback program or pay out a special divi. Previously, mgmt indicated that it didn't want to return cash to shareholders until it completed renogotiating its credit facility. That was months ago when lots of companies were able to successfully able to renegotiate their credit facilities at generally favorable terms. RGS wasn't able to do so and to my knowledge still hasn't. Meanwhile it sits on cash.

I closed out my position a month or 2 ago as I grew tired watching mgmt not be able to 1) improve its core business or 2) execute on its credit facility renegotiation and bump up the share price through buybacks or a divi.

I'll continue to keep this open in CAPs in the event Starboard can drive some meaningful change and get me in the green.

Recs

0
Member Avatar Egalvin (< 20) Submitted: 10/27/2010 3:16:14 PM : Outperform Start Price: $19.39 RGS Score: -146.66

Prime PE takeover traget

Leaderboard

Find the members with the highest scoring picks in RGS.

Score Leader

amorando

amorando (89.55) Score: +170.44

The Score Leader is the player with the highest score across all their picks in RGS.

Top
Pick
Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
Index
Gain
Score Commentary
amorando 89.55 9/5/2006 Underperform 3Y $34.00 -55.08% +115.35% +170.44 0 Comment
ShortestStraw 94.37 7/8/2009 Underperform 5Y $11.64 +31.18% +201.31% +170.13 0 Comment
blflora < 20 7/9/2008 Underperform 3M $25.44 -39.98% +115.52% +155.50 0 Comment
Realwood 56.30 6/23/2008 Underperform 1Y $27.28 -44.02% +107.53% +151.55 0 Comment
beavers24 82.02 6/2/2008 5/2/2011 Underperform 3Y $28.28 -46.00% +97.02% +143.02 0 Comment
oldperson1947 41.27 2/11/2008 Underperform 1Y $23.55 -35.15% +106.78% +141.93 0 Comment
GussosaurusCat 41.27 7/24/2007 Underperform 3W $34.07 -55.18% +82.64% +137.82 0 Comment
hansenrs < 20 10/24/2007 Underperform 3M $28.94 -47.24% +85.65% +132.88 1 Comment
stafis 32.68 8/5/2011 Underperform 5Y $13.56 +12.57% +123.09% +110.52 0 Comment
regentpark 57.16 3/29/2012 Underperform 5Y $17.87 -14.57% +90.25% +104.82 0 Comment

Wall Street

See what the Wall Street professionals think, according to their public statements and filings.

Player Name Player
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
S&P
Gain
Score End Date Commentary
TrackPoisedTo < 20 2/19/2013 Outperform 5Y $18.25 -16.32% +74.35% -90.67 0 Comment
TrackZacks < 20 4/11/2012 Outperform 3M $17.36 +5.70% +2.09% +3.61 4/30/2012 @ $18.35 1 Comment
TrackZacks < 20 1/10/2012 Underperform 3M $15.30 +12.35% +1.73% -10.62 1/30/2012 @ $17.19 1 Comment
TrackZacks < 20 7/11/2011 Underperform 3M $15.34 +3.57% -7.55% -11.12 11/1/2011 @ $15.89 1 Comment
TrackZacks < 20 5/6/2011 Underperform 3M $16.23 -3.26% +0.86% +4.13 7/8/2011 @ $15.70 1 Comment
TrackZacks < 20 5/2/2011 Outperform 3M $16.76 -2.80% -1.48% -1.32 5/6/2011 @ $16.29 1 Comment
TrackZacks < 20 4/11/2011 Underperform 3M $18.27 -8.26% +2.84% +11.10 5/2/2011 @ $16.76 1 Comment
TrackOppenheimer 52.18 3/1/2011 Outperform NS $17.35 -11.99% +98.89% -110.88 0 Comment
TrackZacks < 20 1/10/2011 Outperform 3M $17.05 +7.16% +4.32% +2.84 4/11/2011 @ $18.27 1 Comment
TrackWedbush 87.11 12/21/2010 Outperform NS $15.88 -3.85% +112.55% -116.39 0 Comment
TrackZacks < 20 8/27/2010 Underperform 3M $16.97 +20.15% +10.78% -9.37 10/27/2010 @ $20.39 1 Comment
TrackFeltlandCo 75.53 8/21/2009 Outperform NS $17.96 -25.99% +5.25% -31.25 7/9/2010 @ $13.29 0 Comment
TrackCreditSuiss 90.58 7/31/2009 Outperform NS $12.82 +21.23% +15.53% +5.71 1/12/2010 @ $15.54 0 Comment
TrackCLKing 64.91 7/7/2009 Outperform NS $12.76 +19.63% +197.55% -177.93 0 Comment
TrackZacks < 20 4/8/2009 Underperform 3M $14.47 +15.28% +27.82% +12.54 6/7/2010 @ $16.68 1 Comment
TrackSoros 87.19 3/31/2008 Outperform NS $25.69 -40.55% +108.75% -149.31 1 Comment
TrackRichPzena 86.13 9/30/2007 Outperform NS $29.73 -48.64% +82.42% -131.06 2 Comments
TrackDreman 56.45 9/30/2007 Outperform NS $29.73 -48.64% +82.42% -131.06 2 Comments
TrackJohnKeeley < 20 9/30/2007 Outperform NS $31.82 -12.27% -4.17% -8.10 12/31/2007 @ $27.92 1 Comment

Featured Broker Partners