A $10 target is very much achievable for Reitmans. That would make it at least a triple from here. In order to see the upside, one must be willing to ride the rollercoaster ride , even through a potential recession this year. I'm perfectly fine with that.
As I've mentioned in the past, Reitmans traded just below $10 at the trough of the last recession. Operational numbers were very similar to over a decade ago where shares traded in the double digits. Now, Reitmans will have to prove that these 2 years were not a fluke and that these numbers are sustainable. If I'm wrong on future cash flow projections, then at the very least there is safety in tangible net asset value which provides a floor on the price range. This is certainly true when 60%-70% of the market cap is held in cash.
As im writing this, the company is trading at around working capital with plenty of cash to cover claims against the company.
disclaimer: I purchased shares in a resp account this morning