Reitmans Ord Shs V.RET

Returning Cash to Shareholders

[Contrarian333]

I had an opportunity to speak with management yesterday, particularly about the topic of returning capital to shareholders through a dividend, a normal course issuer bid and/or a substantial issuer bid.  It is management’s opinion that it is premature to consider any of these things just 6 months out of CCAA and with a variety of macro headwinds facing the business.  Furthermore, the feeling is that there is a need to invest capital in the business, (there wasn’t a lot of capital being invested in the business over the last few years) in order to re create a successful enterprise.  Therefore, I think for the time being investors are dependant upon multiple expansion and a re rating to drive further gains.  Very very cheap stock but perhaps lacking an immediate catalyst in the form of a return of capital to shareholders (i.e. dividend, buyback, etc.).

[TheCount11]

Haha gotta love management too early to do ANYTHING FOR shareholders as just out of CCAA.  But wasn't too early for MANAGEMENT bonuses and massive stock dilution though options. Any wonder why the stock doesn't re-rate?

[tomperns]

Not happy about the use of capital but it does show they are confidend about the future. This just became a hold play. As for the options, let's be clear; they didn't hand 2M shares. They gave 2M options to buy at 1.50, so it's not that dillutive. New shares yes, but $3.5M of cash infusion too.

[Mephistopheles3]

Not unexpected.  Especially with the craziness happening right now in the world, there's too much uncertainty for management to recommend something like a SIB.  They've done it in the past, so they know the mechanics and have shown that they can do it when they want.  Give results another few quarters and we'll see if they are able to accumulate a cash balance what they