year ago that it is still cheap now. We have it earning $0.79 in calendar 2022 and $1.40 in calendar 2023. So at $4.75/share its trading at a 6 p/e for 2022 and 3.4 p/e for 2023. EBITDA multiples are 5.4x for 2022 and 3.4x in 2023.
Like many formerly distressed equities the
earnings leverage from operational turnaround, deleveraging, and tax loss carry forwards are especially rewarding for investors. Because of Canada being so lock-down focused in 2021, $BGI is only just starting to show what it can do. Most US retailers are in the opposite
position - having already had their run.
Also, remember that $BGI was remodeling its stores in calendar 2019 (pre-Covid) and so that is not a normal base year to compare off. As such our 2022 and 2023 revenues estimates are really not aggressive at all. We are not counting on
the jewelry boom that swept the US during reopening in 2021. In fact, with Birks having already reported its holiday sales we have a very good feel for the 2022 results at this juncture.
The top-line is solid and has more risk to the upside, but the real story is the expected
profitability rebound driven by its long-awaited full roll-out of its Birks branded jewlery. The in-house manufactured product has multiples of the gross margin that 3rd party sales have and this category has grown its SKUs to a point where it will be the dominant profit
contributor going forward. The category is currently comping 2021 sales in the mid-20s. It is capable of even more as we get back to a post-pandemic world.
BGI has been rock solid during the market sell-off and there is a small cohort of buyers who have a long view of the
company’s prospects and expect to make multiples on their money. Management/family shareholders have not been selling despite the stock’s run last year. Share float remains small and short sellers - which were a problem last year during the lock-down periods - have largely
given up.
While we do not expect the family owners to agree to an M&A the business would be worth $14-20/share on public comps. Instead we expect 2 years of rapid deleveraging and the announcement of further growth initiatives for Birks branded jewelry outside of Canada.
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The U.S. Treasury plans to sell $105 billion of Treasuries this week (Feb 6th) & could impact the economy and markets. My view is that the Treasury Secretary, Janet Yellen, is dangerously incompetent in her handling of the Treasury's finances and our contacts
within the Fed say Powell wants the data to be inflationary to get Yellen and the White House off his back. Yellen is said to be offsetting the Fed's Quantitative Tightening (QT) by issuing short-dated bills and Treasury General Account (TGA) and i believe this is causing a
liquidity-driven inflation problem. We know that Powell is handcuffed and can't raise Fed funds rates to 7% as it could cause a crisis that would mean he has to cut rates and re-launch inflation, with a high chance of repeating the 1970s. Issuing 10s and 30s bonds at current
Let me see if I got this right… Biden, @SecBlinken and cohorts of liberal morons push a false Trump-Russia story who the FBI, ran by Comey who is a liar, had agent Charles McGonigal investigating the claims all the while he was taking bribes from Albania, likely Lulzim Basha,
who he himself was caught taking $500,000 of Russian funding. So what does our dipshit State Dept do? Well they have our ambassador to Albania @USAmbAlbania & Gabriel Escobar parade Basha around the Balkans & US trying to promote him & bash Sali Berisha because they realized
how bad they screwed up and are trying to protect the socialist govt in Albania now from narco trafficking rumors on top of aiding Russian funded politicians who corrupted FBI agents.
You have to argue with ChatGTP and point out inconsistencies and reword questions on a topic to finally get them to agree their green polices are stupid.
Now i had to correct its responses to climate change and renewable energy lol
The Federal Reserve has certain emergency powers that allow it to conduct business outside of its normal mandate in order to stabilize the financial system and promote economic growth during periods of crisis. These powers are outlined in Section 13(3) of the Federal Reserve Act,
which was added during the Great Depression.
Under this section, the Federal Reserve can lend to non-depository institutions, such as companies and municipalities, in "unusual and exigent circumstances." This lending is done through the so-called "discount window," which is the
primary source of funding for banks during times of stress.
Additionally, the Federal Reserve also has the authority to conduct open market operations, which involve the buying and selling of government securities, as well as other financial instruments, to stabilize financial
The new Xi inspired Politburo will probably look frightening to the West because of how many Xi people have been installed and the entry of a bunch of aerospace and military backgrounds. Worryingly is that the current US political situation is plumbing new lows and this won't
help combat China long term. The biggest concerns for the US is China is simply making huge progress on technology on its own (of course after we handed it all to them and they stole the rest) and the fact they are indespensible to the world in terms of supply chains.
This Politiburo will focus on technology advancement and biding their time for the US to fall on its own sword of political discourse. Their biggest fear is Russia collapsing into chaos which would put a dent into their long term energy and commodity needs. Looking for status