Here’s a crazy thought to start the week: would The Brick’s shareholders be best served by going it alone, without Leon’s?
I know. There’s a 62 per cent share premium on the table.
But if you look back just three months, The Brick traded north of $4 per share. If you assume there was some profit-taking involved in its fall to about $3.50 per share, the premium no longer looks as juicy. RBC analyst Tal Woolley notes Leon’s valuation of 7 times estimated fiscal 2012 earnings before interest, taxes, depreciation and amortization is right in line with The Brick’s peers.