Peter Imhof
Le Chateau Inc. (A)
CTU-X
DON'T BUY
Dec 29, 2011
This has been a very difficult stock. Recently reported a very bad quarter. He would stay away from this one. Inventory has gone up a lot and their margins have fallen. Cut the dividend totally. Thinks they are in a bit of trouble.
This was one of the retailers that was talked about becoming an income trust. It had a run-up because of that. Well managed. Prefers US retailers that there's nothing wrong with this company.
Girls’ clothing. One of the best executors out there. Has been beaten up in the last couple of weeks because of a weaker back-to-school report. Has been oversold. 3.65% yield.
A very cheap name right now. Investors are frightened of the retail space, primarily because of the weak US$ and cross-border shopping cutting into the margins. Same-store sales growth has been double digit. No debt.
Moderately priced women's apparel. A really successful franchise in Canada. Trades at quite a discounted valuation at about 10X earnings. Has a healthy balance sheet with over $1 a share in net cash. Looking at this one.
Pretty good underlying business. Retail has been very much out of favour in this market. Trades at a very low valuation multiple and generates a significant amount of cash flow. Smaller capitalization stock and a very illiquid trader.
Specialty retail clothing. Earnings were up 34% last year. Very flexible and can quickly handle changes in the marketplace. Yield of 4.6%. Pretty safe stock with upside.