Stuart Alan Rose
Encyclopedia
Stuart Alan Rose is CEO and Chairman of the Board of REX American Resources Corporation, an NYSE-traded company focused on alternative energy - particularly ethanol - and other industrial investments. REX American is the successor to Rex Stores Corp. — a Dayton, Ohio-based electronics company he took public and established nationally. He also serves as Chairman of the Board for Oil Shale Exploration Company
(OSEC). Rose is a true entrepreneur, buying Rex at the age of 25 when it consisted of only four local stores. An Emory University
graduate, Rose started his career as a research analyst at Bain & Company
. Rose then moved to New York City where he was a merger and acquisition broker under his mentor, Victor Niederhoffer
, at Niederhoffer Cross and Zeckhauser. In the 2 ½ years Rose spent at Niederhoffer, he’d put together approximately 15 deals and became senior vice president by the age of 24. It was while working for Niederhoffer that Rose found Rex and decided to purchase the company himself.
, where he obtained a Bachelor’s of Business Administration in Accounting. Even as a college student, Rose displayed the entrepreneurial spirit. During his summer vacations, he bought suntan lotion on consignment and then sold it blanket to blanket on the beaches of Florida, living off the profits. Rose was later accepted to Harvard Business School, but deferred enrollment and began his career in investment banking.
. At the time, Rex was only a 4-store chain in Dayton, Ohio. In 1984, Rose took the company public. The initial public offering raised $18 million, most of which was used for working capital
. By the end of that fiscal year, sales had risen 36.7 percent to $118.7 million. Rose grew the specialty electronics retail chain to 264 stores across 37 states by 2001.
Rex expanded its offering from its initial focus on radios, to include a broad selection of brand name televisions, camcorders, visual and audio equipment and household appliances. Rex’s business strategy was unique for the consumer electronics market. The strategy placed emphasis on small and medium-sized “niche” markets, efficient operations, local newspaper advertising, and an “everyday low price” policy. By focusing on the smaller, rural markets, which had lower overhead costs and lacked major competitors, Rex was able to earn high profit margins while still offering the lowest price. Opportunistic buying and a no-frill/low overhead business approach also enabled Rex to keep prices low. Rex would receive price discounts from suppliers by purchasing canceled shipments and close-out or year-end models.
Sensing the threat of increasing consumer electronics price competition from "big box" retailers and the Internet which were infiltrating REX's secondary markets, in 1998 the company began to diversify its operations by investing in synthetic fuel partnerships. Those investments proved to be extremely successful and caused management to look for other alternative energy investments. In 2006, Rex began investing in companies set up to build and operate ethanol plants. At the same time REX began the process of monetizing its retail store real estate assets, including the 2007 sale of 86 company-owned stores for $74.6M in cash. In fiscal 2009 REX discontinued its retail operations and in June 2010 it changed its name to REX American Resources Corporation and its stock symbol to "REX" (from RSC). Now REX's ethanol operations represent virtually 100% of its ongoing revenue.
To date (October 2011) Rex has ownership interests in seven ethanol production facilities, six of which are currently operating. The company's ownership interests amount to approximately 169.2M gallons of annual operating nameplate ethanol production capacity. REX is focused on deploying its over $80M in cash to make additional investments in ethanol production facilities or other related alternative energy or industrial projects where the company can leverage its management expertise. The Company is also actively repurchasing its common stock at a discount to its book value and recently announced a new 500,000 share repurchase authorization (September 28, 2011). The company's website is www.rexamerican.com
Oil Shale Exploration Company
Enefit American Oil is a Utah based oil shale exploration and development company. It has been involved in the development of oil shale since 2005...
(OSEC). Rose is a true entrepreneur, buying Rex at the age of 25 when it consisted of only four local stores. An Emory University
Emory University
Emory University is a private research university in metropolitan Atlanta, located in the Druid Hills section of unincorporated DeKalb County, Georgia, United States. The university was founded as Emory College in 1836 in Oxford, Georgia by a small group of Methodists and was named in honor of...
graduate, Rose started his career as a research analyst at Bain & Company
Bain & Company
Bain & Company is a global management consulting firm headquartered in Boston, Massachusetts. Bain is considered one of the most prestigious consulting firms in the world, with 47 offices in 30 countries and over 5,500 professionals on staff globally...
. Rose then moved to New York City where he was a merger and acquisition broker under his mentor, Victor Niederhoffer
Victor Niederhoffer
Victor Niederhoffer is a hedge fund manager, champion squash player, bestselling author and statistician.Victor Niderhoffer was born in Brooklyn to a Jewish family. His father, Arthur, graduated from Brooklyn Law School but went to work in the police. Victor’s mother, Elaine was a teacher....
, at Niederhoffer Cross and Zeckhauser. In the 2 ½ years Rose spent at Niederhoffer, he’d put together approximately 15 deals and became senior vice president by the age of 24. It was while working for Niederhoffer that Rose found Rex and decided to purchase the company himself.
Early life
Stuart Rose grew up in New Orleans with his parents and his three siblings. He attended Emory UniversityEmory University
Emory University is a private research university in metropolitan Atlanta, located in the Druid Hills section of unincorporated DeKalb County, Georgia, United States. The university was founded as Emory College in 1836 in Oxford, Georgia by a small group of Methodists and was named in honor of...
, where he obtained a Bachelor’s of Business Administration in Accounting. Even as a college student, Rose displayed the entrepreneurial spirit. During his summer vacations, he bought suntan lotion on consignment and then sold it blanket to blanket on the beaches of Florida, living off the profits. Rose was later accepted to Harvard Business School, but deferred enrollment and began his career in investment banking.
Career
Rose purchased Rex from Sterling Margolis in 1980 after marketing the company for Niederhoffer Cross and ZeckhauserVictor Niederhoffer
Victor Niederhoffer is a hedge fund manager, champion squash player, bestselling author and statistician.Victor Niderhoffer was born in Brooklyn to a Jewish family. His father, Arthur, graduated from Brooklyn Law School but went to work in the police. Victor’s mother, Elaine was a teacher....
. At the time, Rex was only a 4-store chain in Dayton, Ohio. In 1984, Rose took the company public. The initial public offering raised $18 million, most of which was used for working capital
Working capital
Working capital is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Net working capital is...
. By the end of that fiscal year, sales had risen 36.7 percent to $118.7 million. Rose grew the specialty electronics retail chain to 264 stores across 37 states by 2001.
Rex expanded its offering from its initial focus on radios, to include a broad selection of brand name televisions, camcorders, visual and audio equipment and household appliances. Rex’s business strategy was unique for the consumer electronics market. The strategy placed emphasis on small and medium-sized “niche” markets, efficient operations, local newspaper advertising, and an “everyday low price” policy. By focusing on the smaller, rural markets, which had lower overhead costs and lacked major competitors, Rex was able to earn high profit margins while still offering the lowest price. Opportunistic buying and a no-frill/low overhead business approach also enabled Rex to keep prices low. Rex would receive price discounts from suppliers by purchasing canceled shipments and close-out or year-end models.
Sensing the threat of increasing consumer electronics price competition from "big box" retailers and the Internet which were infiltrating REX's secondary markets, in 1998 the company began to diversify its operations by investing in synthetic fuel partnerships. Those investments proved to be extremely successful and caused management to look for other alternative energy investments. In 2006, Rex began investing in companies set up to build and operate ethanol plants. At the same time REX began the process of monetizing its retail store real estate assets, including the 2007 sale of 86 company-owned stores for $74.6M in cash. In fiscal 2009 REX discontinued its retail operations and in June 2010 it changed its name to REX American Resources Corporation and its stock symbol to "REX" (from RSC). Now REX's ethanol operations represent virtually 100% of its ongoing revenue.
To date (October 2011) Rex has ownership interests in seven ethanol production facilities, six of which are currently operating. The company's ownership interests amount to approximately 169.2M gallons of annual operating nameplate ethanol production capacity. REX is focused on deploying its over $80M in cash to make additional investments in ethanol production facilities or other related alternative energy or industrial projects where the company can leverage its management expertise. The Company is also actively repurchasing its common stock at a discount to its book value and recently announced a new 500,000 share repurchase authorization (September 28, 2011). The company's website is www.rexamerican.com
Family Life
Rose is currently engaged and will soon be married to Mimi M. Grieb who has two gorgeous daughters: Tonya and Sally. Rose has recently embarked on an ambitious quest to become master of the seas. His Sea Ray can now be seen conquering Caesar's Creek and other smaller boats... His nonchalant demeanor and one-of-a-kind generosity endear him to all walks of life (whether it be NYC lawyers, or recent high school graduates). Rose enjoys taking the lead of his plethora of canines around his property when he is not hard at work, splurging on the world's rarest literature, spending quality time with the family (and new boat), or searching wikipedia for newfound historical figures.See also
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