ROL - Rollins Inc

[Martian]

I wanted to post stocks with detailed analysis..but couldn't find the time to do it..so putting this just to start..

 

- pest and termite company.

- consistent growth. great numbers.

- high insider ownership

- not reliant on a single customer

- no debt

 

This is one of the companies I want to fully own. But the price is always high..

[Palantir]

I just looked at it. Firm looks absolutely pristine. And expensive....it seems to be a moderate grower, just one of those firms that you need to wait endlessly to pull back.

 

Maybe selling puts on this is a way to play your bullish thesis.

[Parsad]

I just looked at it. Firm looks absolutely pristine. And expensive....it seems to be a moderate grower, just one of those firms that you need to wait endlessly to pull back.

 

Maybe selling puts on this is a way to play your bullish thesis.

 

Why don't you guys just come to our AGM in Toronto, and then you can talk to our director Glen Rollins.  He used to run Orkin for his family, and I'm sure he'll be able to answer some of your questions about the business.  And yes, it is pristine, has a very good moat, and hardly ever pulls back to reasonable prices.  Cheers!

[twacowfca]

I just looked at it. Firm looks absolutely pristine. And expensive....it seems to be a moderate grower, just one of those firms that you need to wait endlessly to pull back.

 

Maybe selling puts on this is a way to play your bullish thesis.

 

Why don't you guys just come to our AGM in Toronto, and then you can talk to our director Glen Rollins.  He used to run Orkin for his family, and I'm sure he'll be able to answer some of your questions about the business.  And yes, it is pristine, has a very good moat, and hardly ever pulls back to reasonable prices.  Cheers!

 

Yes! This is a Buffett kind of business, Otto Orkin built the company, and O. Wayne Rollins turned it into an udderly bovine  cash cow with recurring revenues and high ROC.

 

People in the south see swarming termites in the spring and are horrified that their houses might be infested.  The homeowners call the first termite company they remember, usually Orkin as a result of their extensive advertising. They are so scared of termites that price is no object. 

 

A salesman who is a licensed inspector comes out and performs an inspection.  He says they will get rid of the termites, guaranteed,and give them a five year guarantee.  Please sign this, only $$600 to $800/ year, we'll bill you.  The next day two servicemen come out, inspect and treat. That takes two or three hours, and now your house is safe, thank God.  They'll be back in a few months to check on things and regularly thereafter.  There should be no further problem, but if there is, we'll fix any damage at no charge, guaranteed.

 

There are commercial accounts too with recurring revenue. They, of course want to hire a well known company, not a fly by night.

 

 

This is not a low profit margin business.  :)

 

 

[villainx]

Could have sworn there was a more recent thread for this company, but don't see it anywhere.

 

Anyway, with some of the interest I found for WM in the What are you buying thread, this came to mind.  I'm assuming commercial pest control is taking a hit.  And residential is ... we skipped pest control for two weeks, but summer weather saw renew pest, so we carefully allowed the exterminator in for their sub 5 minutes of work, I don't know if wider population is doing same.  Anyway, pest control is closely related to essential service, I think.

 

Anyway, they recently released 2Q update: https://www.rollins.com/news/2020/07-07-2020-123036391, and I think market has interpreted it as better than feared, hence the small jump. 

 

The main reason I bring ROL up is that tucked in the update is something about Vitalclean.  An interesting pivot?  So new that it's not part of the "Our Business" on their website, but still worthy to bring up in the update.