Reitmans Ord Shs V.RET

Just a theory...

[pennylane101]

There is no rational, economic explanation for the sudden drop in share price since the company has made a tremendous turnaround.  My one cyncal view is that the big boys  are trying to shake up and clear out the small retail investor who may have purchased shares on margin. As a general rule I never buy on margin.  Sorry fellas!   ;0)  It's a dog eat dog world out there and you gotta protect yourself at all costs.  I'm holding long and strong.

[Mephistopheles3]

Stocks on TSX Venture are not marginable.   I think it's the opposite - there are no big buys or institutions buying or selling.  That means it's all retail doing the action.  Retail investors are all over the place and buy/sell on a whim. So you get investors existing their positions of 100K shares as an example and it just disrupts the whole market.  I posted

[pennylane101]

Well, there goes my theory LOL!  ;0)  I think we've reached the bottom at .85 cents or so.  The volume just isn't there to indicate panic selling.

[pennylane101]

I hold almost 250,000 of the Ret voting shares. My rationale for getting into the voting shares was being burned on the Torstar privatization deal.   After that fiasco, I said never again.  

[pennylane101]

Interesting how Fairfax and Prem Watsa were involved to some extent in both Torstar and Reitmans.  Torstar shares were driven to the ground in similar fashion.

[pennylane101]

Wouldn't be surprised if that fu-cker Watsa had something to do with the drop in share price.

[Mephistopheles3]

I wonder if the experience of Fairfax getting burned on Reitmans is a cautionary tale for other institutions.  No real buyers are getting in there and it doesn't look like management is too inviting to institutions as well  (just look at their MD&A and financials which are as bare bones as they come).   Volume has been quite low lately, we're on our third out of

[tomperns]

Didn't Reitmans buy Fairfax's shares at $3/share like 3 yrs ago?

[pennylane101]

Doesn't mean he doesn't have his eyes set on Reitmans as a potentional cheap acquistion.

[savyinvestor333]

I wonder if Canadian Tire would be interested in adding another accretive retailer to the mix. Don't forget how they took in Mark's Work Warehouse and also Sport Chek. 

[pennylane101]

What, are you kidding, Canadian Tire? LOL!

[savyinvestor333]

No I'm not They have already purchased Mark's Sport Chek and Party City I'm sure we are more profitable than a couple of those chains

[tomperns]

Same rational for me. If Steven Reitman owns half the voting shares, I want to be pari-passu with him. I'm close to 150k shares. Part of me thinks I have too much (and i'm down nearly 30 percent) and part of me thinks these shares are worth $3 today at the very least.

[pennylane101]

I'm hoping for a good 2nd quarter and a turnaround in share price.  Sooner or later the dividends will materialize.  Have you read the Articles of Incorporation?  Have we reached the eight quarters yet and could this potentially lead to a change of control if all shareholders are allowed to vote? 2.1  Subject to the provisions of the Canada Business Corporation Act, the

[savyinvestor333]

I would think if no dividend was declared as is the current case this is a non issue.

[pennylane101]

The non voting shareholders (according to that document) are entitled to a guaranteed 5 cent dividend per year, which must be paid, hence the preferential dividend.  If it's missed for 8 quarters then the non voting shares become voting shares. That's my understanding. I dunno.  Am I misreading it?

[Mephistopheles3]

Think you're misreading something here.  That doesn't make any sense as if there was a guaranteed dividend, they would be more preferred shares vs. common shares.   The audited FS states the following:  The Company has authorized for issuance an unlimited number of Common shares and Class A non-voting shares. Both Common shares and Class A non-voting shares have no

[pennylane101]

Here is the link.  Don't know if things have changed since 1998. https://content.reitmanscanadalimited.com/pdf/RCLCertificateArticlesofAmalgamationAugust

[pennylane101]

Untitled - Reitmans (Canada) Limite - Reitmans (Canada) Limited The link I posted previously doesn't work for some reason. https://content.reitmanscanadalimited.com › pdf › RCLCer

[Mephistopheles3]

Not sure, but I just went into the Annual Information Form filed in 2020 which would have all that info and nothing is disclosed other than they rank pari passu for dividends. So I would go with that there's no option for the non-voting to convert into voting.