This is a follow-up on something I posted two Septembers ago which, over the long haul, was a fantastic short, but there’s no doubt I was too early!
I had suggested shorting Rent-A-Center in this post, and I predicted it would eventually look like the destroyed chart of one of the for-profit education companies. The Rent-A-Center Inc (O:RCII) chart was about $30 at the time, which I’ve marked with an arrow. Here’s where we are at now:
So suggesting shorting a stock at nearly $30 that’s in the single digits was pretty brilliant, eh? Well, yes and no, because you’d have endured some nasty pain beforehand, and I’m the first to admit I wouldn’t have stuck with this short since it pushed about 20% higher before the plunge began.
All the same, it’s nice to see such an exploitative sector get nuked. Oh, and I was spot-on about what the chart would look like. Take a look at the post I mentioned, and you’ll see.