Darspal S Mann
Long/short equity, growth at reasonable price, special situations, deep value

Time To Look Beyond The Macro Concerns At Rent-A-Center

Looking at the news flow of the last few quarters, it's easy to dismiss Rent-A-Center Inc. (NASDAQ:RCII) as another niche retail company catering to low-medium income customers and suffering due to the macro economy. Bears may want you to believe that the company may find it tough to crawl back to the profitable growth, especially with high leverage. Most of the bad press is well reflected in the stock, which is down 40-45% over the last few months.

Taking a closer look, there is nothing that suggests that strategic advantage of this leading franchise in the industry is at risk. Over the coming months and quarters, growth from new products like Acceptance Now, and newer geographies should address...

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