Reitmans Ord Shs V.RET.A

Donville/Kent Roe Reporter

[Torontojay]

-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

[RedeyeGarf2]

Management seems to be on board to uplist to the TSX and their next two quarters are their seasonally most profitable which should show the ability to be consistently profitable each year. These should be the catalysts needed to rerate the stock much higher. --donvillekent 

[nedstar71]

If they are on board with the uplist what exactly is the hold up?  It should have been put into motion almost a year ago.

[RedeyeGarf2]

They just came out of bankruptcy protection in late 2021. I speculate that they want a year under their belt (with solid numbers) before uplisting.

[nedstar71]

I disagree.  It should have been done almost immediately after.  If already uplisted solid numbers would move the stock as they roll in.  As it stands there is no analyst coverage and many funds can't touch it, being on the gutter exchange.