Tim Insko
Long/short equity, value, special situations, research analyst

Valuing Orkin's Parent Company: Rollins Inc.

In my last piece I wrote that it often pays to look for investments in necessary, but dirty industries. In addition to that concept, it can also be beneficial to look for companies whose name masks their best asset. Beyond that, major payoffs can come from special situations that very few recognize until after they are priced into the shares. This week I evaluate a company that matches all three of these themes: Rollins, Inc (NYSE:ROL).

Business Summary

At first glance, many people (including institutional money managers) have no idea what Rollins does. However, the moment you mention their largest subsidiary, Orkin, most people recognize instantly that the company deals in eliminating bugs. This history of Rollins is...

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