Benj Gallander Reitmans (Canada) Ltd. (A) RET.A-T TOP PICK Oct 22, 2018

Bought this about 2 years ago at $3.81. Retail, for the most part, is in the dumpster. This one has done okay, and is up about 20% since he bought it. Pays a dividend of $.05 a quarter. Has zero debt and skilled management. Internet sales have been going up like crazy, but they don't announce the numbers. He is happy to Hold it. Just lowered his target on it down to $14.24, from $16.24. Even with that, it may be a bit pie in the sky-ish. However, as more companies fold, that opens up space for them to get sales.

This is on his Buy list. It pays a nice $.05 quarterly dividend. Just reported earnings, and looked really bad because their Addition L subsidiary, took a big write down of about $26 million. There are difficulties in the retail space, however their same-store sales were up on their bricks and mortars stores. They’re also up in terms of the Internet. This is a good fit.

A large mall based women’s apparel retailer. It is a well run company but they had to endure a band environment as a retailer. They carry a lot of cash in investments and it serves as downside protection. If you think you saw the worst in retail investing then it may be a speculative buy.

Bought this a couple of years ago at $3.81. It had a nice run, and thought about selling, but didn't. Pays a dividend of $.05 a quarter. Recently, everything they have has been doing better. Market share has gone up a bit, their online has gone up, same-store sales have gone up quite a bit, but their overall revenues have gone down because they’ve closed a lot of stores. Have had quite a lot of problems with addition L, so have taken big write offs there, which made the previous black ink red. Where they are going to go with this chain, he isn’t sure. He’s happy to continue holding. His initial sell target was $15+, but wonders if that is way too high.

Owned it a few years. He sees big upside. They have $120 million in cash and zero debt, trading at negative enterprise value. They already own their own warehouse and office building. It's a profitable business based on a value brand. They are doing well, selling quality clothes. The issue is how a board is running them; it got taken off the TSX and put on the Venture where 80% of investible assets in Canada cannot invest. Long story short, the board and family that control the company don't want to return to TSX. Complicated.