TSX:LIQ.DB.B - Post by User
Post by
FootballFan1on Jan 20, 2016 7:16pm
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Post# 24478863
The Problems: Oil Prices and Alberta
The Problems: Oil Prices and Alberta
I think the reason for the share price drop and doubts about revenue, cash flow, and profitability going forward is LIQ currently has 252 stores and 176 of them (70%) are in Alberta.....I suspect investors are worried that should oil prices remain "lower for longer", the Alberta economy continues to decline, people move out of the province, etc., this will have an ongoing adverse effect on LIQ revenues, profitability, cash flow, the dividend, etc.......I realize that LIQ is trying to diversify in the USA, but out of necessity they are doing it very slowly with one store here, two stores there........will not make much of a difference over the short term to compensate for the fact that the bulk of their sales are still in Alberta........Any comments would be most welcome!