Reitmans Ord Shs V.RET

Value trap?

[Dali812]

my concern is if we cant see the forest for the trees... in 2012 this company had sales little over 1 bilion cad... and since then the sales were stagnating or slightly decreasing to around 930 milions...they were paying 0.2 anual dividend and the share price went down from 15 cad to 3 cad and then bankrupcy... this company was a dividend cash cow and the share price was undervalued even 10- 5 years ago... the company doesnt provide any update or guidelines for future revenues or strategies...or at least I couldnt find any in anual report...so are we really sure that this company has still upside to offer? That the management will return or start to increase the value for shareholders? Is it still value investment or a value trap? Any thoughts?

 

[EricSnott]

ONE BILLION in sales???? Comm'on, I find it hard to believe...typo on your part there? v.RET will still be the STOCK of the YEAR in 2023!!!

[Dali812]

Just look at their reports from 2011 or 2012...

[sorrenson]

2013    Annual sales   $1,000,513,000 down 1.9   %        

[RedeyeGarf2]

If RET.A continues to add cash each Quarter, each year to their bank account, now $103 million. The stock will move up to reflect it. The multiple will increase when investors feel it is not luck but it is an ongoing business in being profitable. It is a value play, as long as they don't do what they did in the past and overplay their hands in opening more stores that weren't working.