RE:An easy triple from here Jay, regarding the "roller coaster", I think before any recession we may get rocked around a bit coming up to June and the idiocy of the debt ceiling debate... again. It's an old, but never wasted opportunity by Wall Street to transfer money once more from the street to the rich.
There is no way the US will default and it will be resolved. But, not before fear rises, markets panic and investors rush for the exits at lower prices than they bought. If I'm correct, I will be buying the fear and buying the dip. My next buy is at $2.25. I'm ready if it goes there.
Then... on to the next news cycle.
Torontojay wrote: 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