- lululemon athletica inc. (LULU)
- Aritzia Inc. Subordinate Voting Shares (ATZ)
- Reitmans (Canada) Limited (RET)
That could of course happen with RET or any other stock. RET is no doubt cheap, and has potential. But the company has gone bankrupt before, and many of the same executives are still in charge. ATZ meanwhile went public at $16 in 2016 and, despite its problems in the last 18 months is now $34. One has created shareholder value, one has not. RET is much smaller, and from its current level could do well. However, we think, if its expansion plans go well, ATZ offers more upside potential. ATZ likely has more global expansion potential (ala LULU) and is probably a more likely takeover candidate. We would prefer ATZ if long term capital gains are the main criteria for selection.