RH may soon need to raise ‘dilutive capital,’ Hunterbrook says in short report

RH (RH) may “once again be running out of money” and “may soon need to raise dilutive capital, unless the company manages to turn cash flow positive in the fourth quarter,” according to Hunterbrook Media. Hunterbrook Capital is short RH, the media arm of the hedge fund disclosed in its report. Among the 85 major U.S. retailers valued over $5B, RH “now has the second-lowest Altman z-score count of just 1.65,” reports Hunterbrook, which adds that this bankruptcy risk indicator “has predicted corporate failures since 1968” and the claims the current level puts RH deep in what analysts call the “distress zone.”