Donville/Kent Roe Reporter -bonuses are now tied to operating profit and all indications are for a strong Q2 and Q3 which are their strongest quarters.
- they lowered the estimated value of their head office to $30m due to it being an older building ( I.e, more depreciation)
- they kept the same value for their distribution centre and adjoining land as reported in the past
- the average p/e multiple of 9 comparable companies to Reitmans is 11.7 compared to 2.2 for Reitmans. This would suggest a $15 + price range or a 400% + upside if they close the gap to its peers.
- they are hedging their retail exposure by shorting the more expensive names
https://donvillekent.com/wp-content/uploads/2023/07/DKAM-ROE-Reporter-July-Final.pdf