Just published this as my lead-in point (of 19 points) to subscribers of my RetailDirect product ().
1. It’s funny how a narrative can change so much overnight. RH went from being the weakest executor in retailer with an egotistic CEO that is using shareholder capital to stretch the balance sheet and take the company private. Now…beating and guiding up to what is potentially the greatest magnitude I have ever seen in my life, while taking inventories down 27%, shuttering a DC and moderating capital spending – all of a sudden a convert refi is completely plausible/likely. Now earnings matters again – and I’ve got the company pushing $4.50 next year – earning the Street’s ’19 number a year early. It’s not difficult, at all, to get this stock back to $105.
Try and find a bigger stock reaction for a company that didn't announce it's been acquired.
