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

Liquor Stores Banners and Dividend

[jimmytps]

I've been thinking, about the many Brands they have and have visited a few of the stores. I'm just outside edmonton in Sherwood Park.

Here is my Thoughts:

A few years ago all I heard people talk about was Costco and their prices. Now all I hear about is the selection from Wine And Beyond (Prices at costco, pretty much same at Wine and Beyond but try and get out of Wine and beyond without a cart full of high margin products costco does not carry). Better service as well.

It seems that the Liquor Barn banner in Alberta is ready to disappear. They appear to have already renovated the stores that would benefit the most from it and changed to Liquor Depots. I see the ones that are not renovated are what I would consider to be marginal locations and customer counts in front of the stores would indicate this as well. I know of one store at least that is across from a costco on yelowhead that appears to be being kept open due to a 500 meter rule prohibiting Costco from opening another store. I hear there is at least one other store like this. I would not be renovating some of these stores either.

Liquor Depot seems to be the convience store banner that the majority of their stores in Alberta have.
I found these stores to be up to date, even the smaller ones.

For Alaska I understand they only have one brand and that would be Brown Jug, I have not visited any of these stores. What advantage would we gain changing the name on these stores? I see none they are way up in Alaska and all the same name. Spending money just to change a name may make sense during a boom time but right now Alaska has been affected by the oil crash in the same manor as Alberta.

In the states I hear Kentucky is only Liquor Barn, again why change the name? It is consistent in That state. Kentucky has had challenges and oportunities caused by some states moving from dry (no liquor stores) to wet. Why spend money on signs at this time. I understand these stores are in nice shape and do not require renovation (can anybody confirm this?)

I understand BC stores to be similar to the Alberta Market, but wish I had thought to pop in to a few on my past visits.

Anyone have information on the other stores in other states?

Saskatchewan should be all new as they are just privatitising there.

Point North keeps complaining about the drop in the Dividend. They did not own there shares when it dropped they bought in between $6.50 and $10. The dividend dropped because of goverment regulations. Liquor Stores used to be somethin called a REIT. This allowed them to pay out a dividend before paying taxes. The goverment changed this rule making Liquor Stores no longer one. They kept trying to pay the same amount out for awhile but where paying out more then they could take in and thus had to reduce it to a more sustainable amount.
So if Point North has a problem with the 67% reduction in dividend go complain to the goverment for changing the rules.
And if you are going to try and compare open free market like Alberta has to a goverment run monopoly I question your logic.

If Point North is in this for the long run all they had to do was take 2 board seats they were offered and learn the business. I'm sure they would have come to some better conclusions then they did and it would have cost us the shareholders a lot less money having to fight with them.