Post by
nozzpack on Feb 16, 2023 8:06am
Will History Repeat Itself
Flash back to 2006-2007.
RET was trading in the $25 range.
Annual sales were a tad over $1 billion.
There were 952 stores and the gross margin was 21%.
RET was paying a dividend of $0.16 per quarter and net earnings were in the $1.10 range.
So, it was trading over 20 times net earnings .
Today, RET has just 404 stores yet generates annual sales in the $800 million range.
Gross margins are over 57% and net earnings will exceed $1.25 when Q4 reports.
Cash flows are now over $2 per share or several times higher than 2006-7.
All we need is the re- institution of a robust dividend to get us back to or near historic highs.
That dividend might re-appear when 2022 Financials are announced in April..
Comment by
nedstar71 on Feb 16, 2023 9:29am
Uplisting back to the big TSX, along with some other key initiatives and a share price of $20 is feasible.
Comment by
churchofnutsacc on Feb 16, 2023 11:03am
Sounds like to me they had an unsustainable dividend program - and then look what happens when they had to cut that dividend. My vote would be for buybacks.