After getting a haircut today and thinking about beauty salons, I decided to research Regis Corporation (RGS, Financial), which is the largest hair salon chain in the world with over 10,000 salons.
Some of the company's brands and salons include City Looks, Famous Hair, Best Cuts, Saturday’s, HCUK, Supercuts, Pro-Cuts, Hair Crafters, Magicuts, Mastercuts, Borics Hair, Hair by Stewarts, SmartStyle, Cost and Vidal Sassoon.
Jim Simons recently added 334,500 shares, a 26.79% increase in his holdings and now has a total of 1,582,900 shares of Regis Corporation.
Joel Greenblatt (Trades, Portfolio) has added 56,199 shares, a 317.24% increase, and now owns 73,914 shares of the company.
Paul Tudor Jones (Trades, Portfolio) initiated a new holding in Regis, buying 15,780 shares.
Regis has 8,247 company-owned and franchised salons located in strip center locations and Walmart (WMT, Financial) Supercenters. This is very strong differentiation advantage for Regis because of the amount of potential customers that Walmart provides on a daily basis.
By 2002 Walmart was the number one company on the Forbes 500 list and since then, it has only been surpassed by Exxon Mobil (XOM) three times in 1996, 2009 and 2012. Currently Walmart is once again on the top of the list.
Below is a Peter Lynch chart for Walmart.
I really like to look at the Peter Lynch charts to gain an understanding of the earnings compared to the price of a company. Peter Lynch had tremendous success when he managed the Fidelity Magellan Fund from 1977 to 1990, during which time the fund's assets grew from $20 million to $14 billion. Lynch was also able to able to beat the S&P 500 index in 11 of those 13 years, achieving an outstanding average return of 29%.
Regis  is also traded in Germany.
Regis has a market cap of $800.06 million, a forward P/E ratio of 84.03, a P/B ratio of 0.48, a P/S raio of 0.48 and a dividend yield of 0.42%.
Regis gets a lot of potential customers by having locations inside of Walmart stores. With this competitive advantage, this is a profitable investment.
Cheers to your investment success.
Disclaimer: The author does not currently hold any shares of Regis Corp.
