Reitmans Ord Shs V.RET

Results in April!

[Contrarian333]

time to re focus on this name!

[Shredder415]

if they reinstate the dividend its about a 16% yield

[tweezer1957]

too early for a dividend. They need to have a few good quarters. No retailer is out of the woods yet with a possible recession. I will sell all if mediocre results and half on good results

[Shredder415]

I disagree, there have been several good quarters. There is plently of liquidity of the balance sheet for a roughly $12 million dividend/buyback. The market is placing zero terminal value on the business. The Reitmans should be focused on returning capital to shareholdes/themselves. Using a potential imminent recession to hold off on returning capital is a mistake. 

[savyinvestor333]

I'm sure they have covenants in that new $105 million loan from BMO that will not allow dividends until some targets are hit.

[bucheroncapital]

A Dividend , LOL !! what we need is an good business model and a few QT showing good financials and fair execution and from the current level it will only be up up and away !

[savyinvestor333]

Yes once that seller is done at $1.60 

[pennylane101]

There is a section in the articles of incorporation that the non-voting shares are guaranteed a yearly 5 cent dividend and this is cumulative before any dividend is decalred or paid out.  My understanding is that the next dividend, whenver that is, will be minimum 10 cents.

[bucheroncapital]

At this point a dividend is not the best way to allocate capital for RET, my opinion as a shareholder.

[Shredder415]

What do you believe is their best use of capital? Curious in an open discussion. My view is this business has been a melting ice cube for most of the decade. Capital allocation is very important to the returns a shareholder will see in a situation such as Reitmans. I believe the Reitman family can do good by following the strategy that Dillards (not the exact same situation since Dillards owns

[bucheroncapital]

Since debt is now trimed, in my view they need to optimize their network of store and reduced them if not profitable.  More they need to focus on E commerce, brand and design.  They need also to invest in customer Expirence.  They have a long standing loyal customers, strong brand , good suppliers now that they are lean they need to execute , dividend is not a good avenue at this

[tomperns]

Buy-backs also not a good idea. Last time they bought Fairfax's shares at $3 (about 4 years ago), that almost buried them. All they have to do is keep generating positive cash flow like they have done for 4 consecutive quarters and this will be a $5 stock in a couple of months. When the audited numbers come out in a few weeks and the market not only digests the clean balance sheet but the cash

[Lllennn]

Pay off any debt first, gather cash then share buy back and or div imo