Johnny Clark

Retail Ventures' Hidden Value

I am long RVI. Bought back in December after the huge amount of insider buying, and studying the financials.

I very much agree with your points Mr. Meade, and I would also add that RVI and DSW are both cash flow positive. They have huge depreciation charges which affect GAAP earnings, but cash flow-wise, very healthy.

One question...can you explaing how the PIES work? I notice that every quarter they are making mark-to-market adjustments on this convertible debt. Lately it's been accretive to operating profit, but what can we expect going forward, and why? Another bullish signal...in the most recent quarter, RVI bought back some of it's PIES (about $10m worth).