Regis Corp (NYSE:RGS)

kkconway (99.28) Submitted: 2/11/2013 11:44:52 AM : Start Price: $17.94 RGS Score: -6.55

Divestiture of Hair Club for Men asset looks like a short term catalyst, but it could be a nice play for long term growth, if the new management stops the bleeding at Supercuts salons, they are off to a promising start as of last quarter.

RXDOC73 (99.14) Submitted: 10/10/2011 7:28:11 AM : Start Price: $15.61 RGS Score: -22.94

Looks like they are considering selling off hair club and concentrate on their core. I will give it a shot as hair club will generate a nice one time for investors.

TMFDeej (99.46) Submitted: 8/16/2011 4:23:57 PM : Start Price: $14.37 RGS Score: -9.67

The successful activist investor fund Starboard has a new target, Regis Corporation (RGS)...of all things a salon operator. It should be noted that Regis also owns everyone's favorite haircuttery, Supercuts and the Hair Club for Men. I'm no fan of salons, but I am a bug fan of Starboard, so if they think there's value here there very well may be.

It recently sent a letter to the company's board of directors stating "that Regis trades at a steep discount to the value of the sum of its parts and far below its specialty retail peers as a result of deteriorating operating results, driven in part by a bloated cost structure and a lack of operational focus." The stock is cheap, trading at around 3.2x Enterprise Value / EBITDA before today's pop. This compares with an EV / EBITDA multiple of 6.9x for what Starboard is a group of Regis' peers.

Starboard believes that RGS should "Starboard stressed that Regis should dramatically reduce operating expenses, exit its non-core businesses, and focus on its core North American salon business." It has nominated three people for election to the company's board of directors in an effort to push some of these changes through.

Starboard believes that these changes would result in $100 million in cost savings. While I am not adding a position to RGS in real life, I have decided to add it to my CAPS portfolio.

Starboard Value Delivers Letter to Regis Corporation

http://finance.yahoo.com/news/Starboard-Value-Delivers-prnews-1428869719.html?x=0&.v=1

Deej

Egalvin (< 20) Submitted: 10/27/2010 3:16:14 PM : Start Price: $19.54 RGS Score: -46.71

Prime PE takeover traget

hansenrs (< 20) Submitted: 10/24/2007 12:15:41 PM : Start Price: $29.17 RGS Score: +53.09

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 very large straw for me. I've been watching them closely since to see if I could trust them enough to put money back in. The only thing they have holding them back seems to be their own overconfidence. I'm not ready to reinvest yet.

NetscribeServcs (25.44) Submitted: 3/27/2007 9:12:34 AM : Start Price: $38.04 RGS Score: -74.62

Regis Corp., (RC) is beauty industry's global leader in beauty salons, hair restoration centers and education, aims to provide high quality affordable hair care services and products to a wide range of customers through salons located in high traffic and convenient locations. As of December 31, 2006, RC’s worldwide operations included 11,570 company-owned and franchise salons, 88 hair restoration centers and 55 beauty schools.

In fiscal 2007, revenues improved by 9% to $1.3 billion reflecting increase in service revenues from salons in North America & international market and higher product sales from beauty schools division & hair restoration centers. North American salons contribute over 80% to revenues.

RC intends to continue with its expansion plans through organic growth and acquisitions. With only about 2% of the worldwide market for hair care service and products, RC believes future growth opportunities are ample. It’s expanding further in North America, the United Kingdom and continental Europe. RC is likely to enter the Japan market through a partnership with Wal-Mart in the next six months. It’s expected to enhance revenues and will enhance its brand awareness in international market. Launch of Intelligent Nutrients with industry legend Horst Rechelbacher will likely provide a small boost to sales.

RC’s large size enables it to enjoy economies of scale. As overall populations continues to focus more on personal health and beauty, demand for salon services, professional products and hair restoration services will continue to increase. Softening of US salon industry will also add to demand. With a 17.06 price earning ratio multiple, well below the industry ratio, the company has endowed with enough opportunities to nurture. But strong expansion plans and operating efficiency will enable it to bridge this gap.