$RH · Financial Education · 2026-10-26

The second of these two stocks is this one. It's RH. It's the newest stock in the public account, isn't it? Even Right now, I've made a profit of $5,600 per share in the general account.

People are worried about debt. Their term loan is a 2028 situation . RH's underlying long-term debt obligation stems from a $ 2 billion term loan , Loan (B), secured in October 2021, and an additional $500 million term loan (B2), secured in May 2022.

Both tranches are due to mature in about two years. So, if they get a chance in the next two years, they should be able to refinance that debt at much lower rates, right? Then they have a 2030 situation.

So, you're still looking several years ahead for RH, right?

But, RH is in a position where revenue should increase significantly over the next year or two . Their profit margins have already started to rise and should increase even more over the next year or two .

Earnings per share are expected to rise . That's the projected earnings per share for the next two years here , right? And that shows you their current operating cash flow and free cash flow, and how much better they are compared to the massive free cash flow and operating losses, you know, just two years ago .

So, everything is already on the right track for that company.

And that's another situation where I look at it and wonder, " When do you want to buy?" We talked about greed when others are afraid, didn't we ? "I mean, can it get any scarier than this?

Look at the headlines you're seeing. Existing home sales hit a 25-year low ? The lowest in 25 years? Worse than 2008 ? I mean, when you see headlines like that, I'd call it a pretty scary situation , wouldn't I?

By the way, I talked about RH in this video here: Seven Stocks You Should Buy Before October 31, 2026. You should check out that video over there. I'll be talking about some other great investment opportunities , but RH was definitely one of them, okay?