
Current Price | $0.71 | Mkt Cap | $32.2M |
---|---|---|---|
Open | $0.76 | P/E Ratio | -4.08 |
Prev. Close | $0.71 | Div. (Yield) | $0.00 (0.0%) |
Daily Range | $0.70 - $0.77 | Volume | 7 |
52-Wk Range | $0.70 - $1.85 | Avg. Daily Vol. | 123,318 |
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.
Current Price | $0.71 | Mkt Cap | $32.2M |
---|---|---|---|
Open | $0.76 | P/E Ratio | -4.08 |
Prev. Close | $0.71 | Div. (Yield) | $0.00 (0.0%) |
Daily Range | $0.70 - $0.77 | Volume | 7 |
52-Wk Range | $0.70 - $1.85 | Avg. Daily Vol. | 123,318 |
The best Bull and Bear pitches based on recency and number of recommendations.
Read the most recent pitches from players about RGS.
Recs
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
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
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.
Find the members with the highest scoring picks in RGS.
ShortestStraw (41.07) Score: +476.96
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 |
---|---|---|---|---|---|---|---|---|---|---|
ShortestStraw | 41.07 | 7/8/2009 |
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5Y | $11.64 | -93.93% | +383.04% | +476.96 | 0 Comment | |
stafis | 24.12 | 8/5/2011 |
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5Y | $13.56 | -94.79% | +257.64% | +352.43 | 0 Comment | |
amorando | 95.16 | 9/5/2006 |
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3Y | $34.00 | -97.92% | +245.23% | +343.15 | 0 Comment | |
blflora | < 20 | 7/9/2008 |
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3M | $25.44 | -97.22% | +245.50% | +342.72 | 0 Comment | |
Realwood | 94.34 | 6/23/2008 |
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1Y | $27.28 | -97.41% | +232.69% | +330.10 | 0 Comment | |
oldperson1947 | 58.26 | 2/11/2008 |
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1Y | $23.55 | -97.00% | +231.49% | +328.49 | 0 Comment | |
beavers24 | 90.02 |
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3Y | $28.28 | -97.50% | +215.85% | +313.35 | 0 Comment | |
regentpark | 34.28 | 3/29/2012 |
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5Y | $17.87 | -96.04% | +204.98% | +301.03 | 0 Comment | |
hansenrs | < 20 | 10/24/2007 |
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3M | $28.94 | -97.56% | +197.61% | +295.17 | 1 Comment | |
GussosaurusCat | 54.17 | 7/24/2007 |
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3W | $34.07 | -97.92% | +192.78% | +290.71 | 0 Comment |
See what the Wall Street professionals think, according to their public statements and filings.