Not a good conference call in my book. Here are my take aways:
1. Rent "core" business evaporating (nothing new here)
2. Rent can't gap up lost sales with new business offerings [yet]
Seems like we are on a path to bleed to death. Here are my questions to this board (and please take off the rosie glasses or the "I hate PR lapel pins" for the moment):
1. Does RENT have a compelling story on a compelling product line? (Essentials). Is the value proposition sexy enough for major companies to fork out major millions...?
2. Does RENT have the sales & business development team to take these services to market? Seems like it has been a really long time since RENT has sold a high value service to a broad audience. Even counting "the good ole days" RENT never really had to face stiff competition to get a deal.
3. How much pressure does the management team feel to turn this boat around? If we stay with the status quo, we will see posts similar to "rough quarter but PR promises a deal Q2 this year..." and "I think we are about to turn the corner and we should be above 12 in a month" or even "how was the fishing?" in 2008! No offense- but I would rather see posts like "stuck at 35 for a few weeks. When will be break 40?"
Seems like unless the management team really understands this and is willing to make significant changes (from my externaly limited view)- it is time for me to exit.
Core business not evaporating...grew 20% apples-to-apples excl Movie Gallery switch from PPT to DRS.
New business offerings are compelling. Just takes a long time to build them, prove them and sign up customers. In the meantime,as long as they can run the business cash-flow neutral, no threat of "bleeding to death".
i am one who often criticizes pr's calls. however, i thought this call was rather positive and i heard some things that lead me to believe that i may be seeing some light at the end of the tunnel. if pr announces some contracts with some content providers within the next month or two, then increased revenues and profits can't be far behind.