Voted #1 Activist Short Seller by The Activist Investing Annual Review 2019
RH: The Clear Winner from the De-Urbanization of America
$400 Price Target
Making money in this market has been a thinking man’s game. While the market was tanking in mid-March, savvy investors were able to put aside the near-term fear and take hold of the new realities and buy what are now known as the “stay at home stocks”. The largest beneficiary of this phenomenon was Wayfair whose stock went up over 700% from trough to peak in less than two months as people were scurrying to buy home office and kitchen accessories.
Now that the near-term panic is over, Citron thinks about the new theme that appears to be a secular trend rather than a one quarter phenomenon…
The De-Urbanization of America.
Regardless of the possibility of a vaccine, the trend of moving out of cities to the suburbs for larger living spaces where people can work from home and the home is a sanctuary will be long-lasting.
What one company is already thriving and is about to significantly beat consensus estimates for the coming years on this new way of living?
RH (formerly Restoration Hardware) – a design ecosystem that will boom in de-urbanization.