Tuesday, June 07, 2005

a few notes on RSTO

Roth Capital, who are some of the most bullish analysts around, had a few interesting things to say about RSTO (Roth is neutral on the shares). Basically, Roth talks about execution risk regarding plans for the rest of the year. I'm still looking to short in the 8's. The shares moved a lot today, getting into the 7.60's at one point so the 8's aren't too far off. Here are Roth's main points:

Remodeling and refixturing 90% of its store base over the next two months at a cost of $15 million

Co. is re-merchandising all of it's core categories

Systems overhaul. 1st system rolled out in mid FY06

Re-launch of the website and new look to the catalog

New Concept--Co. hired a SVP from WSM's West Elm concept

Clearly, the above speak to the challenges RSTO faces over the next year.


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