TSX:LIQ.DB.B - Post by User
Post by
Goldbuggy1on Apr 02, 2016 9:41am
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Post# 24723317
Don't Kid Yourself!
Don't Kid Yourself!
Also don't let others fool you. Research there books and form your own opinion. The Company didn't cut there projected New Store Growth for this year from 10 to 4, or their Office Staff by 20%, or their Dividend by 66%, or even there $2.5 M on store remodeling, all because they had a better place to put this money showing a 20% or high teens growth. The did these cuts because they had to! As plain and simple as that! Look! If they can get this 20% Return on Capital as they claim then why haven't they up to now? They have $196 M in Debt where most of this was on CAPEX and opening or buying New Stores. After all there cash flow should have paid this Dividend as many claim it does now. So if there Interest Payment on this $196 M is about 6%, or less, and they turned that money into a 20% Return on this Capital, or even in the High Teens, then where is all this money they made? If they make 20% on borrowed money at 6% why don't they pay off debt instead of borrowing more money all the time? Understand this! They made these Cuts because they had to!