A small-cap, deep-value retailer which runs two store chains, DSW (shoes) and Filene's Basement (discount retailer of brand goods). Early this year, RVI unloaded its majority stake in Value City Department stores. Columbus-based Retail Ventures (RVI) transferred 81% ownership of the then-113-unit chain to an investment group, VCHI Acquisition Co., in January.Deep value parameters for RVI include: EV/EBIDTA of just 1.4X, $142M market cap with $164M in cash, $171M in debt, estimated forward PE of 15, 50% owned by Schottenstein Stores.
Also, major insider buying by the Chairman & CEO in last two weeks:
10-Oct-08 SCHOTTENSTEIN JAY L Officer 250,000 Indirect Purchase at $2.77 per share. $692,500
9-Oct-08 SCHOTTENSTEIN JAY L Officer 105,700 Indirect Purchase at $3.02 per share. $319,214
8-Oct-08 SCHOTTENSTEIN JAY L Officer 141,200 Indirect Purchase at $3.02 per share. $426,424
The move to unload Value City looks good as they are cutting jobs:
Value City Department Stores has cut its corporate staff and is down to just 37 remaining stores.
$2.52 (10/22/08)
