LIQUOR STORES NA LTD 4.70 PCT DEBS T.LIQ.DB.B

RE:Nice deal

[Goldbuggy1]

d_trump wrote: These 2 NJ stores are huge - $25M USD each.  What many people don't realize is that LIQ's US business is already 30% of their sales (even though only 15% of their stores are US).  And the CONN and MASS stores are 16,000 ft which is much bigger than the typical CDN store footprint.  So by 2017, LIQ will probably be close to 50% US.   Much better than expanding in Canada.  There may be an opportunity in ON down the road but by looking at how the ON government has botched the roll out of beer sales in grocery stores - I hope LIQ takes a pass on any opportunity in ON.

Ontario Liquor Stores going private would be a huge Canadian Market, but I don't know if they are ready for that soon as they seem to be a bit gun shy right now. Saskatchewan and Manitoba on the other hand both seem willing and will probably go first. Both of these governments are promising that if they are re-elected this year they will go private. So greater market potential for LIQ which I am sure they will want to be a part of. It seems odd to me that only a couple of years ago LIQ potential for new stores seemed limited. It was though they were sitting around waiting for counties in Kentucky to go from Dry to Wet before they opened a new store. But now with their recent entry into the N.E. USA they have potential there to open 12 more new large format stores alone. So now LIQ has a lot of growth potential in the coming years as well as to diversify out of the resource based areas.