Rent-A-Center, Inc. (RCII)

RCII the old symbol for Renters Choice ~ for magic Ernest Talley back in the old days went around like Sanford and Son, picking up old furniture and used items ~ and came up with the idea of renting it out to people who could not afford out right purchases. See back then, there was no credit people had to save up to make purchases, more often than not they had to go without, until they could come up with the entire purchase amount. Ernie made a killing and soon ran out of used merchandise so he then bought new items and offered them to people with payment options. The idea caught on and people like Mark Speese worked in this business that Ernie Talley founded. What usually happened was Ernie would buy up the rental companies that Mark Speese was involved with. The company use to make good money, but now it has sucumbed to mediocrity. In 1999 Thorn enterprises got tired of being in the RTO game and their next in line competitor RENTERS CHOICE through its well run stores, made an offer to buy out the largest company in the RTO game ~ RENT A CENTER, Ernest Talley shrewedly made an offer that subtracted one billion dollars against the companies fair value because at the time RENT A CENTER had a One Billion dollar judgement against it for predatory and other bad practices. Anyways Rent A Center agreed to sell minus the billion dollars !!!!!! Ernie Talley was no fool and he had managed to nickel and dime the judgment to only around 300 million dollars, so right off the bat, Ernie TAlley made a cool 700 million off the purchase of RENT a CEnter, the bad news was he had to convert the Renters Choice stores into REnt a Center, and in many cases there were stores way to close to one another, yet because of the strength of its employees and the strength in the business, the company was sucessful. In fact at one place they had a Renters Choice and a Rent A center right next door and for several years they operated 2 independant staffs with only a wall and a few feet dividing the 2 stores. I know this because I was in the business, I helped crush the old RAC and I helped manage its purchase by killing myself for Renters Choice, the bad thing was we had to change our names to RAC as they had twice any many stores as we did. Anyways RAC managed to beat out and kill its competition ~ Rainbow rentals and Rent way and as in the past this company had grown by acquisitions, however in the process they let a lot of people go ! Maybe they bought too many stores, maybe they screwed too many people, maybe they fired too many good people and allowed many others to get burned out and quit.

Anyways now a days the company is in full rectract mode, the once 20 percent profit margins are gone and they are closing stores left and right. This company isnt afraid of bending the law and breaking the backs of its employees or customers. However what comes around goes around and now a days it does not look good for RAC, once profitable electronic margins are gone as old electronics have goen unpopular and the new stuff is really expensive and offers far less favourable profit margins. The business model is risky with customers easily able to steal the merchandise they rent.

Whats worse is the pressure the employees face, this company once was good, and it once tried to go from good to great. However now a days its simply mediocre and should be looking to survive. However sometimes there are worse things than simply surviving.

Rent a CENTER / REnters Choice use to be a good investment opportunities, however now a days your investment will only bring you loss.

According to the Standard and Poors report, 10,000 dollars invested in RAC stock 5 years ago would now be only worth around 8,ooo. only eight thousand dollars with no dividends paid ~~~~ ever !!!!!!

My advice to you would be to take your 8,000 and go somewhere else.....!!!!!!!!!!!!!!!!!!!!!!


LORD Z PAIN

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