Reitmans Ord Shs V.RET

Projected EPS for 2023/24 fiscal year should be 22 million

[RedeyeGarf2]

Current earnings for three quarters, is 13M about 1/3 of previous year 3Q.

If the 4th Q earnings is a 1/3 of last year 4Q (27 M), another 9 millions.

Total earnings is 22 million for the year or about 0.44 cent per share.

No debt. Over $100 million in cash. Property/land $100-200 million.

50 million shares outstanding

Deeply undervalue like most small caps are.

[Northforce13]

Last year's Q4 had an income tax recovery of 31 mil which will not recur + This year's Q4 will likely be down a bit revenue wise How do your numbers look when you adjust for that?

[RedeyeGarf2]

I stand corrected. Thank you for pointing that out. You are right there was tax recovery in last year's Q4 which contribute significantly to the earnings in Q4.  Only other note, the COG and Operating expense was higher than normal given the revenue. Earnings will be closer to 1-3 M is my guess.  Earnings for 2024 fiscal year maybe 15-18M. That is about 30-36 cent a share.No debt. +

[Torontojay]

A great long term risk/reward play. In the short term, profits could be impacted due to a sluggish economy but the low valuation partially makes up for it.  It is cheaper than pre-covid levels but the company is much more sound financially. Pessimism in the Canadian economy has lead us to attractive valuations on small cap names that I have not seen since the GFC.   

[Northforce13]

"Only other note, the COG and Operating expense was higher than normal given the revenue. Earnings will be closer to 1-3 M is my guess. " No and no, the COG Opex for Q4 are always higher than other quarters historically, Q4 is the Q in which they writedown inventory and blow it out.   Adjusted earnings for Q4 will be negative, just like last year they were negative, but this

[Torontojay]

Yup, earnings are often negative in Q4. 

[Lllennn]

Anywhere around $2 for non is a great entrance point and bad stopped with the cash on hand imo

[TheCount11]

Just to clarify for investors.  IFRS states that inventory is measured as the lesser of cost or net realizable value every time Financial Statements are prepared.  See FS Note 5.  IMO Q4 inventory blow out waterfalls down.  Lower Revenue, Lower Gross Margins, Lower Operating Margins.  

[Lllennn]

I've been saying for a long time for people to buy the voting shares, the spread is almost $1, there is a difference when you have a vote , but I would wait for the non vote to trade at $2 and consolidate, they probably issue more options at $2 ish imo