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

RE:RE:RE:RE:RE:RE:RE:Power of the USD

[OilMoneyAB]

Goldbuggy1 wrote: LIQ has paid a monthly Dividend since 2004 and since there IPO without any decreases. The only changed it to be inline when they went Private instead of being a Trust Fund. But to the Shareholders the payment was equal. That is a perfect track record and one any company would be proud to have and want to keep. The CEO has recently stated that the company is aware of the important of there Dividend and they will try to protect that. Even if it means reducing the opening of new stores. He said Liquor is not a Fashion item which goes out of style. That they are here to stay. So do you care to explain your logic behind why this company would suddenly cut there Dividend I May? Is may an unlucky month with you? Why not now? Companies don't look days or weeks ahead. They look quarters ahead and even farther. The company has several options in raising more money, which they don't really need right now. They can extend there Credit Line. Sell Stocks, which I don't think they would do at these low prices, or offer more debentures. Sell Debentures paying them 6% a year, (last ones sold paying 5.85%) and buy back stock where you won't have to pay 15% a year on dividends, and thus you saved yourself 9%. No? Expect some big financing in February or the end of April which will be good for the company and also protect this Dividend.

 

 

That would be a great idea, to issue debentures at 6% and use that to buy back shares, very smart move long term.