RSH certainly has its work cut out for it, but the buzzards have stopped circling, at least for now. The company currently trades for 1.38 times net current asset value, an extremely depressed valuation, and .68 times tangible book value per share. While there was ample cash at the end of the first quarter, $435 million or $4.36 per share, that will probably continue to decline as the company attempts to right-size itself. There is also ample debt, $712 million, which will need to be addressed.
I expect that we'll learn more about the progress of Joe Magnacca's "100 day plan" when the company reports second-quarter earnings next month. Consensus expectations appear to be fairly low, with revenue of $814.7 million, a 22% decline from last year, and a loss of 23 cents per share.
This ugly duckling has performed very well so far this year, and has shown some progress, but there is still much work to be done.Follow @JonMHellerCFA This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV