Shots on goal Many times investors write off a stock for dead.
Sometimes the companies are not dead they are just sick and other times they end up on life support where the hospital is a courtroom and the doctor is a bankruptcy attorney acting as a monitor. If the company emerges from CCAA it is usually healthier. In Reitmans case it was definitely healthier. Investors realized this and the Class A stock rose from 7 cents to $2.38. Nothing goes in straight line and there was a pullback. Many value investors couldn't understand the magnitude of the pullback as the stock went on to give back 67% of the gains. A lot of pullback was understandable because every other apparel retailer was either growing, buying back stock or both.
Just like fashions change so do narratives.
The marketplace represents something new. It took me some time to wrap my head around it.
Its opportunity.
Its a new narrative and direction for the company.
It will start small and grow attracting growth investors along the way. They will discover a solid foundation and the Price to Sales multiple will explode higher because growth companies are primarily valued on Sales not Profitability