Pest-control firm Rollins falls after Spruce Point reveals short position

Rollins

04/10/2023 14:10

** Shares of Rollins  ROL.N  drop 2.5% to $35.37 premarket,
after Spruce Point Capital Management reveals a short position
in the pest-control services provider 
    ** The short-seller warns the co's shares can drop 30%-40%
on concerns over cash flow and leveraged acquisitions
    ** Says Rollins is struggling to maintain its competitive
positioning in an industry undergoing fundamental change
    ** "We see multiple headwinds to margins and believe Rollins
is under-investing in its business ... debt is rising while
ROL's valuation premium bolsters the case to sell" - Spruce
Point 
    ** Rollins did not immediately respond to a request for
comment
    ** As of last close, stock down 0.7% YTD 

 (Reporting by Granth Vanaik in Bengaluru)
 ((Granth.Vanaik@thomsonreuters.com; Twitter: https://twitter.com/Vanaik_Granth;))