RSC's case is a perfect example of Peter Lynch's "Di-worse-ification"-- a company delving into a new business that it does NOT understand in a desperate attempt to achieve more growth rather than improving on their existing businesses. Although the valuation of this company is compelling, the business plan frankly sucks and I wouldn't buy it.
On the other hand, American Eagle Outfitters AEO has definitely caught my eye. It's at 52 week low share price and 5 year low P/E of 9, no debt, a strong brand and strong management.
Joe Pozio's analysis is here Note it starts in July 2007 but follow the comments section all the way to the bottom for more recent interpretations.
Another detailed perspective.
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