Savvy Trades and Investments

[gilead23]

RTMNF looks kind of interesting

This is a troubled Canadian retailer going through the last phases of the Canadian equivalent of chapter 11.

They just announced earnings for Q3 of .45. Stock is trading at under 2 CDN. Seasonally speaking it looks like generally Q2 is their strongest followed by their just reported Q3. Q4 tends to be a bit weaker than Q3 but not much. There was also a small wage subsidy in there that you can knock a few cents off to accommodate for. 9 month EPS of .94, but I imagine there are some one times in there.

If I understand the details they have a meeting with creditors to finalize their payments next Tuesday. Creditors are expected to take a 90 million dollar haircut. Assuming 10 million in operating lease assets are removed with that you get an 80 million bump to book value which is about 155 million in tangible book so close to 4 bucks a share.

I took a small gamble on a few shares based on a cursory look. Interested if I missed something, but seems like a decent trade on the creditors deal getting approved.

https://seekingalpha.com/pr/18605540-reitmans-canada-limited-announces-results-for-13-and-39-weeks-ended-october-30-2021