What I will describe below is how Friedman is now using a combination of positive cash flow and new debt to further reduce the share count.Friedman is effectively conducting a “stealth/quasi/creeping” going private in order to drastically reduce share count.
If Friedman is successful, the value of the total awards to him will exceed $500 million.
At least $25 million of this will come to him within just the next few months.
( Even aside from earnings announcements, Friedman has made use of other ongoing announcements to propel the share price higher over the past 5 months.
There was the announcement of the share repurchase, the announcement of Friedman’s own open market purchases of $2 million in RH stock in the $70s and then the announcement of the early repayment of RH’s second lien notes in October.
Name: RH (formerly “Restoration Hardware”) Ticker: (RH) Market cap: $1.8 billion Current price: $89.24 52w Lo/Hi: $24.41 / $91.81 Shares out: 21.2 million (float of 18.6 million) Shares short: 8.8 million (48% of float, 9 days trading volume) Avg.