TSX

Groupe Dynamite (TSX: GRGD) debuted on the public market with a secondary offering, raising $300 million for existing shareholders. The IPO valued the retailer at $2.7 billion, with an EV/Revenue ratio of 3.0x, above the average for North American retail comparables. Groupe Dynamite plans to use its free cash flow to support U.S. expansion and enter the U.K. market. With revenue reaching $888.4 million in the last 12 months and a three-year CAGR of 14.9%, the company is positioned for growth in a competitive fashion landscape. Investors remain focused on its ability to sustain these trends. [more]

We have updated our Seasonality Chart (presented at the end of this report) and made significant changes, including updating the beginning-and-end dates for the periods of seasonality strength, and adding a further ten industry sectors. We remain cautious towards the market and recommend defensive positions. Given the recent strong upward movements in stock prices, we would welcome over the summer months a lengthy consolidation period or a meaningful, but healthy, pull-back. [more]