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Rocky Mountain Liquor Inc V.RUM

Rocky Mountain Liquor Inc., through its subsidiary Andersons Liquor Inc. (Andersons), owns and operates private liquor stores. The Company owns and operates 25 liquor stores in Alberta. The product mix generally offered by Andersons at its retail stores includes beer, spirits, wine and ready to drink liquor products, as well as ancillary items, such as juice, ice, mix and giftware. The Company is focused on locations outside of the urban centers (Edmonton and Calgary) and on specific sites with maximum traffic and minimal competition. Andersons is also focused on store operations and optimizing its operating margin. Its liquor stores in Alberta are located in Athabasca, Athabasca, Beaumont, Cochrane, Devon, Edmonton, Fairview, Fort Macleod, Morinville and others.


TSXV:RUM - Post by User

Comment by Fansseon Sep 10, 2021 12:12am
133 Views
Post# 33838470

RE:RE:RE:What do you guys think about the Q2 results?

RE:RE:RE:What do you guys think about the Q2 results?With conservatives inputs, even with the same volume of sales of 2019, the business will do 45 millions of Sales for the year with 1 million in Net income. Adding to this, with conservative negative working capital for the year of minus 100 000$, the business will be doing 1 200 000$ of FCF. 

The current valuation is around 7 times FCF.

I don't know about the inflation and you're making a great point there, but taking into consideration any organic growth and a positive working capital that usually happens in Q3, Q4, we're looking at an even cheaper valuation and I think we have all good reasons to assume positive growth when comparing the first two quarters with 2019. The business is doing more sales with less stores. (29 stores vs 26 stores, 21.972 millions vs 21.082 millions)

I think this is an investment is limited downside and lots of upside in terms of value investing. 
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