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

Privatize Provincial Stores

[mercatos]

Although on the surface it sounds like a good idea for LIQ to perhaps buy some existing units if Ontario or NB or any other province privatizes their liquor store network, I would excercise caution.

To purchase an existing location would in my mind include as part of the deal a couple things that would make it sour.  Grandfather existing wages paid to these government eimplyees.  Keep them unionized as another condition.  This would make it cost prohibitive.  

Being allowed to open stand alone would make more sense.

However in saying all this, I would not think spending any capex in Canada would make sense.  All Capex should be invested in the US growth and cherry pick the right jurisditicions balanced with the sales opportunity growth is better use and leverage for capital employed.

Also I really do not think LIQ will make any changes on Dividend and Share count for the next 24 months.  They need to play out the 7 point plan, keep the institutional partners happy and leverage US growth to further seek extra capital for expansion.  

I set up my Flipboard news with a Liquour as a topic.  I read that in the US licences are hard to come by and demand a premium price.  In saying that US banks are very willing to finance ventures surrounding anything to do with liquor sales.

LIQ shoud make it a priority to focus on US expansion and illustrate clearly in any investor package and company presentation determined they are.  It would be a good idea to spin out US operations as a stand alone reporting into LIQ and make some aggressive projections.

LIQ can be a true consolidator in the US and that story is not widely known or understood yet.  It is the responsibilty of LIQ leadership to beat that drum loudly and create that investor excitement.  That is the only way we are going to be back into the mid 30xP/E ratio this stock deserves.

Cheers

PS dont forget to get your cards, chocolates, flowers today

[Goldbuggy1]

I don't think you would good much argument from many as it seems to make good sense. I do have a couple of question though, which from your post was unclear to me. How do you propose LIQ to spin out it's US Operations as a stand alone? Form a new company there? Sell shares on the US Stock Market? How would the present Shareholder benefit from that? Would they be given shares in this new

[mercatos]

Yes spin off the US operations while maintaining shareholder equity.  I am sure there could be many combinations of what that could look like and I dont really want to spend much energy on this.  I am sure there are many great readers out there that have insights to this. LIQ should focus on the US market.  Consolidate refers to the depth of the independent and small local chains

[freedom-1970]

I would love to see another deal were we could Double our cash flow into a market state side with the   Weed upside !  Governent will open the doors soon to grab the tax money and we could offer Wal mart type shopping ....

[Storman]

Great idea if LIQ can tap into the new upcoming weed business. I also think the upcoming financial statments will provide few leeds on the direction of the company. Cross you fingers. Ciao

[Goldbuggy1]

Well I am not sure what you consider to be a strong message to shareholders of LIQ wanting to focus on US Growth, but I think if you look more closely you will see that in there last 10 Transactions. Since June 30th, 2015 LIQ has closed 1 store in Alaska and 1 store in Edmonton to consolidate sales, and opened 2 convenient stores in Edmonton. But more importantly, on July 1st, 2015 LIQ opened 2

[mercatos]

Goldbuddy1, you missed an aquisition of a store in alberta and also capex investment to 'refresh' some stores.  All these investments should be channeled to the US IMHO, here are a couple of ideas that help illustrate what i refer to as sending a stronger message. More press releases regarding milestones achieved as they happen, New store openings, record sales focused on US

[Goldbuggy1]

I do agree there is a lot more they can do to promote this stock. If I recall the last presentation was in September 2015.

[puma1]

sell or close Alberta stores with the lowest turnover and redeploy the inventory working capital into other stores.