Reitmans Ord Shs V.RET

Reitman’s summary

[Torontojay]

Cash: $116,653k 

lease liabilities (current) : $31,329k 

lease liabilities (non current) : $ 106,265k 

debt: $0 

net earnings: $ 14,815k 

market cap (A shares)  : $125,704k 

P/E = 8.48 

Current assets : $154,476k 

Reitmans is trading close to its cash value with no debt. It is also trading below its current assets with a significant margin of safety. The company should consider a Ncib as the shares are trading at a discount to its book value. As of years end, shareholders equity (book value) is $279,018k and the price to book ratio is only 0.45.

[nedstar71]

Just the idea that they have chosen to have not commenced an NCIB is insulting at this point given the cash they have.  It makes me question their motives and whether they are aligned with shareholders interests, especially the class A.  Shares seem stable in the first few minutes here so at least we aren't seeing the usual panick sell on earnings.

[savyinvestor333]

It is starting to become obvious that they have no idea on the future of the business. If they need $116 million for "just in case bad quarter event" they have no idea of the business they are in.

[nedstar71]

Yeah, what worries me is that someone is holding that cash for some hair-brained expansion idea or whatever else that uses up too much of that cash.  Either way for me at this point I'll keep a stink bid on the voting shares, and look to divest of my few remaining A shares if there is a decent opportunity.  If the voting shares ever came down to where the A shares are currently I'

[Lllennn]

We are confident of the future and remain focused on delivering long-term value to our shareholders". 

[filoux004]

My bet is low ball Mgmt Buyout ie Indigo. Small shareholders are getting frustrated.  Regardless, never understood why they allow MBO. Go figure

[nedstar71]

No question allowing management buyouts has the potential to make them all too incentivized to do little or nothing to increase the share price, if that's the intended end game. And that certainly appears to fit here.  

[Lllennn]

Can you add in the 20 million bonus/ dividends to insiders?

[filoux004]

20M ???? Last batch of options 400k shares granted have a strike price of 3.04$. Bottom line I continue to add . SP basically is the cash on hand, you are paying zero for the business with 800M in revs and zero debt. Go figure glta.

[Lllennn]

Apparel retailer Reitmans Canada (RCL) increased fourth quarter revenues by 8.1 million Canadian dollars or 3.8 percent to 221 million Canadian dollars, while comparable sales including e-commerce net sales, decreased 1.6 percent. For sure I've been adding to position. IMO 

[RedeyeGarf2]

With these value stocks, you just have to think long term. The market is not efficient.

[Lllennn]

The street is efficient,it's just they don't want to pay retail investors, but at cash prices you buy and hold and keep adding imo

[Lllennn]

It's important to own RET, if they try to go private your vote will matter as your looking for $6/share imo

[TheCount11]

Explain the steps to Reitmans privetization like I am a 6 year old.  

[Lllennn]

How does it go to main index with the volume lol imo

[Lllennn]

You going to AGM and listen to DANIEL RABINOWICZ talk about working hard to up list bla bla bla  and he other no sense lol imo

[nedstar71]

Do you ever wander down random streets muttering to yourself?  Just curious.

[Lllennn]

49 million shares and a handful trade in a day? So I'm on a ship, and I have everything I need but I'm barely moving? So cargo owners and ship owners are very happy with the ship's progress? What would they say?  I can tell them O I'm waiting for something but I can't tell them what it is lol. IMO