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Bullboard - Stock Discussion Forum Reitmans Ord Shs V.RET

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

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... see more

TSXV:RET - Post Discussion

Reitmans Ord Shs > So correct me if I am wrong
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Post by savyinvestor333 on Dec 21, 2021 4:48pm

So correct me if I am wrong

but shareholders equity just increased by close to $2.00 a share from the decrease in liabilities. The property that has a book value of $62 million has a current value of $110 million so another $1.00 a share hidden value. We need to pay the creditors $95 million which will be paid with a laon from BMO but we have roughly the same amount of cash so a wash there. We also had $133 million in inventory at the end of the quarter. Anyone want to take a  stab at a guess of value per share now? Once we report 4th quarter our trailing P/E is going to be around 1.5 or 2 if all they do is break even.
Comment by Zemoy190 on Dec 21, 2021 4:56pm
I believe this should be trading around 4-5 bones right now. The fear of creditors pushing Reitmans into bankruptcy was lifted today with the approved plan. Solid earnings in Q4 and year end financials which should be released near the end of April should bring this to around 7-8. Will be very interesting to see where they go after this. 
Comment by Shredder415 on Dec 21, 2021 5:05pm
This situation has continued to derisk itself with every new piece of information released. $4-5/share is reasonable, conservatively take $70M of EBITDA at a 4x multiple puts this in that range. This has been a dying business the past decade, I believe Covid allowed them to rip the band-aid off with permanent store closures and we will hopefully see stabilisation in the business longer-term.
Comment by tomperns on Dec 21, 2021 5:04pm
Book value post CCAA (after shaving off over $100M of liabilities) is about $3.50/share. If they stay profitable, I think $5/share is pretty conservative. I think we see $3 by mid Jan and $5 by early April when Q4 comes out assuming they made money in Q4, which is very likely. Having said that, the retail business is pretty brutal so I don't expect shareholders paying more than 5 times ...more  
Comment by savyinvestor333 on Dec 21, 2021 5:24pm
Anyway you slice it we have a long ride up to get to ROOT's valuation and target prices that TD and Scotia have on them.  We have 300% gains in the last 3 months I would be very happy with anothe 300% in the next 3 months. That would put us at only $3.00 which is easily doable.
Comment by savyinvestor333 on Dec 21, 2021 5:30pm
Sorry I should clarify  another 300% from my initial purchase price.