Post by
LyChauncey on Sep 30, 2022 3:51pm
Reitmans' CCAA price action
It was interesting to study the price action of Reitmans during the CCAA process. The share was trading at around $0.32 a share before May 1, 2020. That was already a depressed price (the average price of shares was about $2.8 in 2019), so I guess financial distress was mostly priced in. Prior to the CCAA announcement, the May 1, 2020 earning release was a disaster and the shares plummeted to $0.12 level. 18 days later, on May 19, CCAA announcement kicked in and trading was halted. The SP was at exactly $0.075(Same as XBC bid/ask now) a share for the next 3 months. After trading resume at TSXV on September 3rd, 2020, the share jumped to the same $0.12 level before CCAA announcement and stayed there for another 2 and half months then the situation got better the share went straight up to the highest $2.1 a share in January 2022. The market then crashed and today's price is $1.55.