Reitmans Ord Shs V.RET

Then it was 5$

[filoux004]

Given 6$/share cash plus real estate you are paying 0$ for the going concern. Bottom line clear runaway to 6$ after that the mkt will start applying reasonable multiples to the operations with a clean balance my guess is we could see 9$ by the fall. Keep in mind relisting on the TSX and restating a dividend policy could propel us much higher. In the end this will be known as the 'The Great Turnaround Story's. DD and glta

[RedeyeGarf2]

Cash and Real estate is roughly $4-$6 depending on whose estimate you use for property value. But most investors discount book value by 25% especially if they have no plan to monetize the real estate by selling it and leasing it back. Its the cash flow x multiple that will have a greater weight on estimating the expected value of this stock. Do you use 5x multiple of 8x multiple or 10 x multiple

[filoux004]

The choice of multiples is the great magic trick that Wall Street analysts use through each business cycles. At the end being reasonable and pragmatic keeps you away from. trouble. Because you sound informed your choice of multiple is as good as any wall street gogo boys.

[Torontojay]

Good post.  We also need to define if the multiple is on cash flow, ebitda or free cash flow. Each one would have a different multiple assigned to it. For instance, I may use a 7.5 times multiple on ebitda to value the "firm" and a 15 times multiple on earnings to value the "equity" component.