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

RE:RE:RE:RE:FOR PH UC SAKES

[Ticker28]

I agree that I think management and directors all need to increase their exposure so that we know their interests are aligned with shareholders.  I would really like to see some insider purchasing and not just token purchasing.  I think they will pick up on this and perhaps show us some faith.

I keep coming back to the fact that the current ability to pay the dividend has nothing to do with the current market value.  In fact the current dividend ration is a result of the current market value which is far below book value.  

They are not currently bleeding to support the dividend although the pay out ratio is higher than wished for.  If sales stay solid were fine as long as managment doesn't cut the dividend in the pursuit of growth which I would not like and nor would others.  Also with the higher volume of sales brought by the US it will bring with it cash flows that will outgrow the dividend.  If they play their cards right they should be able to not only sustain the dividend but actaully accelerate EBITDA which should adequetly reduce the divend payout ratio.  In time they could even expand the dividend with disciplined expansion. 

We will see what the current quarter brings as it is the historic slow qaurter and oil is still unsettled but finding a tradable bottom.  Give it time and it's encouraging as oil bottomed off lows and moved higher for the intraday.  Might have our double bottom and a bounce yet which will also bring relief to LIQ.  

Only reason LIQ is down is the same reason the entire TSX is down - oil prices.  2016 will be the year of recovery.  Plus don't forget we got BC and US sales to supplement.  US sales were surging last report which wether considered dusty and old is to ones opinion.  It still gives a starting point and one can draw their own conclusion from current economic indicators.