Reitmans Ord Shs V.RET

Alternate Symbol(s): RTMNF | RTMAF | V.RET.A

Consumer Cyclical

Reitmans (Canada) Limited is a Canada-based specialty apparel retailer for women and men, with retail outlets throughout the country. The principal business activity of the Company is the sale of women’s wear. The Company operates three different brands: Reitmans, Penningtons and RW&CO. The Reitmans banner is a specialty fashion destination. The Reitmans has an online presence and store locations across the country. Penningtons is a destination for plus-size fashion, ranging from sizes 14 to 32. Penningtons operates stores across Canada, as well as an ecommerce site at penningtons.com. RW&CO. operates stores averaging 4,500 square feet in premium locations in shopping malls, as well as on their e-commerce site. Specializing in menswear and womenswear, the brand delivers versatile, well-crafted collections and brand experiences. It operates approximately 391 stores under three distinct banners consisting of 226 Reitmans, 85 Pennington, and 80 RW&CO.

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Reitmans Ord Shs > IDG…Superb Complementarity with RET

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Post by nozzpackon Jun 08, 2023 4:34pm

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Post# 35487262

IDG…Superb Complementarity with RET

Idg is a cash cow on Steriods in its Q3.
It cash flowed $172 million in Q3 which is the Xmas Quarter which boosted the cash position by $122 m to $149 million.Thereafter, it is cash flow negative for the next 3 quarters .

RET is solid in Q3 ..over Xmas..but not so with net earnings .

Rather, RET is very strong in Q2 and Q3 when IDG is very weak.

So, cash flow wise, acquiring RET makes a lot of sense.

They can buy Control of RET by simply paying $75 million for the Reitmans total holdings of 7.5 million RET shares .
Im sure they would sell for $10 per share.

Lots of synergistic gains by acquiring control of RET....