Roots Corporation

ROOT-T

Analysis and Opinions about ROOT-T

Signal
Opinion
Expert
WATCH
WATCH
November 25, 2019
For tax-loss selling? It's disappointed the market. But it's time to look at it. They should take the company private; the share price is so low, so disastrous since its IPO. Existing owners could buy it all back. Overall, retailing is a difficult space now.
Show full opinionHide full opinion
Roots Corporation (ROOT-T)
November 25, 2019
For tax-loss selling? It's disappointed the market. But it's time to look at it. They should take the company private; the share price is so low, so disastrous since its IPO. Existing owners could buy it all back. Overall, retailing is a difficult space now.
DON'T BUY
DON'T BUY
August 26, 2019
It's struggled since some private equity guys bought and flipped it which left a bad taste with investors. The stock is now trading with an overhang. They've stumbled a bit but have done okay. There are better retail stocks to buy. Has dropped from $10-2, since it went public.
Show full opinionHide full opinion
It's struggled since some private equity guys bought and flipped it which left a bad taste with investors. The stock is now trading with an overhang. They've stumbled a bit but have done okay. There are better retail stocks to buy. Has dropped from $10-2, since it went public.
HOLD
HOLD
July 9, 2019
A short chart, so hard to analyze. If you like the company, then hold it. This is a total guess. It's not a trade. Don't rush out and buy it.
Show full opinionHide full opinion
A short chart, so hard to analyze. If you like the company, then hold it. This is a total guess. It's not a trade. Don't rush out and buy it.
PAST TOP PICK
PAST TOP PICK
May 29, 2019
(A Top Pick Jun 27/18, Down 63%) A disappointing performer, but he still holds it. Same store sales plunged last year following the completion of Canada 150 sales. It is still profitable, although it always loses money in Q1. An iconic brand and is expanding slowly into the US. He would be a buyer if he wasn't already an owner.
Show full opinionHide full opinion
(A Top Pick Jun 27/18, Down 63%) A disappointing performer, but he still holds it. Same store sales plunged last year following the completion of Canada 150 sales. It is still profitable, although it always loses money in Q1. An iconic brand and is expanding slowly into the US. He would be a buyer if he wasn't already an owner.
DON'T BUY
DON'T BUY
May 27, 2019
If you're getting into clothing, brand really matters. His preference is LVMH, which is diversified, and their new line is direct to consumers. LVMH dividend continues to grow and they have brand power and staying power. Brand power leads to pricing power.
Show full opinionHide full opinion
If you're getting into clothing, brand really matters. His preference is LVMH, which is diversified, and their new line is direct to consumers. LVMH dividend continues to grow and they have brand power and staying power. Brand power leads to pricing power.
TOP PICK
TOP PICK
December 11, 2018
A plummet in shares last week. But it has a very good brand and he believes a positive catalyst of some sort will happen, like someone will buy it. This is a speculative buy. Expect more pressure because of tax-loss selling, but then it can only go up. (Analysts’ price target is $5.44)
Show full opinionHide full opinion
Roots Corporation (ROOT-T)
December 11, 2018
A plummet in shares last week. But it has a very good brand and he believes a positive catalyst of some sort will happen, like someone will buy it. This is a speculative buy. Expect more pressure because of tax-loss selling, but then it can only go up. (Analysts’ price target is $5.44)
DON'T BUY
DON'T BUY
December 4, 2018
It's a case on not buying stocks at an IPO. IPO expectations were too high, and Roots has struggled since then. There are forecasts that in 2020 it will earn 73-cents a share vs. 90 cents at the IPO. Managers overpromised at the IPO, so the stock got punished. It trades at 5.6x enterprise value to EBITDA, lower than its peers. But he fears that expectations are still wildly unrealistic. Doesn't see 49% earnings growth in a time when sales are moderating.
Show full opinionHide full opinion
Roots Corporation (ROOT-T)
December 4, 2018
It's a case on not buying stocks at an IPO. IPO expectations were too high, and Roots has struggled since then. There are forecasts that in 2020 it will earn 73-cents a share vs. 90 cents at the IPO. Managers overpromised at the IPO, so the stock got punished. It trades at 5.6x enterprise value to EBITDA, lower than its peers. But he fears that expectations are still wildly unrealistic. Doesn't see 49% earnings growth in a time when sales are moderating.
TOP PICK
TOP PICK
June 27, 2018

The buying opportunity came after their Q1 report where they blamed bad weather for poor sales. Otherwise, the quarter was solid: over 6% same-store sales growth, gross margins increased and they're expanding in the U.S. gradually--about to open a store in Boston. Well-managed. They have a great online presence, so there's also growth here. (Analysts' price target: $15.06)

Show full opinionHide full opinion

The buying opportunity came after their Q1 report where they blamed bad weather for poor sales. Otherwise, the quarter was solid: over 6% same-store sales growth, gross margins increased and they're expanding in the U.S. gradually--about to open a store in Boston. Well-managed. They have a great online presence, so there's also growth here. (Analysts' price target: $15.06)

PAST TOP PICK
PAST TOP PICK
June 27, 2018

(Past Top Pick, January 25, 2018, Down 10%) They had a disappointing Q1. Roots blamed this on the bad winter weather, which is valid. He'd still buy it. (Also a top pick this day.)

Show full opinionHide full opinion

(Past Top Pick, January 25, 2018, Down 10%) They had a disappointing Q1. Roots blamed this on the bad winter weather, which is valid. He'd still buy it. (Also a top pick this day.)

WATCH
WATCH
June 21, 2018

It took a huge beating after the IPO last year and then came back. He has difficulties with their forecasts because they are often more optimistic than they should be. They are moving into the states which will be costly. They are building a new distribution center but they take a while to ramp up. He thinks they will have tough sledding going forward and will not hit their profitability goal so there won't be a dividend any time soon. Their same store sales went up and their revenues went up, so that is positive.

Show full opinionHide full opinion

It took a huge beating after the IPO last year and then came back. He has difficulties with their forecasts because they are often more optimistic than they should be. They are moving into the states which will be costly. They are building a new distribution center but they take a while to ramp up. He thinks they will have tough sledding going forward and will not hit their profitability goal so there won't be a dividend any time soon. Their same store sales went up and their revenues went up, so that is positive.

TOP PICK
TOP PICK
January 25, 2018

It suffered after the IPO. He Poo-Poo’ed it last time and then a week later he read a great report. The argument was that new management would ring out better efficiency. They are down 23% in SKUs. It gives you a lower quantity of merchandise and you buy more from suppliers. Less is more. They do a fair online business in the US. There is potential to expand down there further down the road. (Analysts’ target: $14.00).

Show full opinionHide full opinion
Roots Corporation (ROOT-T)
January 25, 2018

It suffered after the IPO. He Poo-Poo’ed it last time and then a week later he read a great report. The argument was that new management would ring out better efficiency. They are down 23% in SKUs. It gives you a lower quantity of merchandise and you buy more from suppliers. Less is more. They do a fair online business in the US. There is potential to expand down there further down the road. (Analysts’ target: $14.00).

COMMENT
COMMENT
December 12, 2017

This was a $12 IPO recently. When they went public, it was secondary so the money was being paid to the founders of the firm, and not to the company. So, the company still has to grow. Their category is not a high growth one, just basic attire. Projected growth rates were not that high. The company is really having to prove itself. It is hard to see that what they offer is so unique.

Show full opinionHide full opinion
Roots Corporation (ROOT-T)
December 12, 2017

This was a $12 IPO recently. When they went public, it was secondary so the money was being paid to the founders of the firm, and not to the company. So, the company still has to grow. Their category is not a high growth one, just basic attire. Projected growth rates were not that high. The company is really having to prove itself. It is hard to see that what they offer is so unique.

DON'T BUY
DON'T BUY
November 30, 2017

They recently completed their IPO. It struggle a bit out of the gate and has treaded water ever since. It is a fashion brand that has been out for long time. He does not see the growth here. There are a lot of better places to be in retail. Where is the expansion going to come from. He does not see the brand translating well into the US.

Show full opinionHide full opinion
Roots Corporation (ROOT-T)
November 30, 2017

They recently completed their IPO. It struggle a bit out of the gate and has treaded water ever since. It is a fashion brand that has been out for long time. He does not see the growth here. There are a lot of better places to be in retail. Where is the expansion going to come from. He does not see the brand translating well into the US.

Don Lato

Unlock Ratings

Price
$10.050
Owned
Unknown
Showing 1 to 13 of 13 entries
  • «
  • 1
  • »