TSX:LIQ.DB.B - Post by User
Comment by
buyvalue1on Jan 04, 2016 10:46pm
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Post# 24429385
RE:RE:RE:13 percent dividend ????/ Solo Liquor Store Competition
RE:RE:RE:13 percent dividend ????/ Solo Liquor Store CompetitionThey will be buying the cheaper low margin beer brands and wines. Same thing with hard liquor. Cheap low margin whiskey and vodka. Solo is cheaper than LIQ in all those areas. Wonder if the premier wine stores they opened will be giving them fat margins? Haha. It's pretty easy to see why short interest is rising. How can you payout 13 percent with the gross margins they have?
i don't think the potential divy cut has been factored in. They will have to report Q4 soon and then you will see the year over year per store drop .
I would be be very worried if I was holding any LIQ on margin with my broker. Under 5 bucks and your getting a cash call. Buck up more cash or your forced to liquidate. Once you go below $5, next stop is $2 and then the broker won't give you any margin. The shorts will be drinking expensive champagne and scotch. Banks can't borrow against their inventory. That's a lot of coin tied up that can't be leveraged.
Who knows where oil is going. They should conserve cash by cutting the dividend and prepare for a really rainy day
what effect do you think AB's new min. Wage laws are going to have on LIQ's margins?
it's the slow season for liquor this quarter.
Imho, they should batten down the hatches
we live in Intresting times. Proceed with caution.