Position opened: First purchase on January 31 2019, total average cost of $3.43 CAD

Position closed: Declared bankruptcy protection in May of 2020

Hold period: 1.62 years

Rates of return: -100% (simple) and -100% (annualized)

This investment was a return to deep value, as I reasoned that past success should translate into a (similar) future success. As 2019 progressed, things looked OK. Year end 2019 numbers were reasonable with positive earnings, positive cash flow from operations, good dividend coverage and solid book value. Even 2020 numbers (up to February 2020), while worse than 2019, weren’t catastrophic. However, once COVID hit full force, and everything was locked down, it was the end for Reitmans, which wasn’t exactly an online powerhouse. Without COVID, a turnaround might have fit within our time horizon, but every now and then, the market hands you your head on a plate, just to remind you who the boss is…..

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