Reitmans Ord Shs V.RET

Attractive fundamentals

[Torontojay]

As of Fridays closing price, Ret-a shares are trading at a 68.5% tangible book value and 59.3% to book value. 

Working capital is currently at $142.912m and a market cap of $154.828m. In other words, the company is trading close to par with working capital. I'm getting greedy again. 

Investors will be buying with these metrics and traders will be selling at the disappointment of no Tsx uplifting and/or dividend announcement. 

It's important that we distinguish the difference between types of investors. 

We will prevail in the long run. 

Best of luck.

[Trooper01]

Hope your right but they are not very friendly to us with no annual mereting or TSX listing on their cards.  I fear they want to privatize the cie for peanuts, hope i am wrong

[CarefulSpec]

No doubt on an asset level this looks attractively priced. My concern is what might be the start of a change in the business operating metrics that may make it harder to actually make money. Their revenue in Q4 was actually above a very profitable Q3. What changed is weaker margins along with a blowout increase in the selling and distribution expense line and an SG&A bump. They should have

[nozzpack]

Q1 is not always a money loser. It had net earnings from operations of $18 m in 2022 and added to the cash position. Get your facts straight and being not a shareholder, why are you posting here..

[CarefulSpec]

Sure if you count large one time federal subsidies they were profitable on an operating basis in the first quarter of fiscal 2022, but they were still barely a net money loser. If you count that quarter as profitable though I have good news. They earned over 50 cents this quarter! And I'll point out the irony in this sentence ""Get your facts straight and being not a

[Trooper01]

Where do you see weaker margins?? "Gross profit for fiscal 2023 increased $95.5 million to $448.7 million as compared with $353.2 million for fiscal 2022. Gross profit as a percentage of net sales for fiscal 2023 increased to 56.0% from 53.4% for fiscal 2022"

[CarefulSpec]

It's always good to respond to what was actually said. Note I'm comparing Q3 to Q4 and noting that despite increased revenue Q4 was a money loser compared to a nicely profitable Q3. Here's the part you should maybe reread. "Their revenue in Q4 was actually above a very profitable Q3. What changed is weaker margins"