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

RE:RE:Cut The Dividend Already.....

[OilMoneyAB]

Goldbuggy1 wrote:

FootballFan1 wrote:
Last year LIQ reported their Q4 results in early March....That Q covers the Christmas season so if they don't match or beat last year's EPS and other key figures, this stock might continue to get whacked......LIQ seems to be tracking the price of oil - justified or not - perhaps because most of their stores are in Alberta - Who knows if those left in Alberta are still drinking it up and buying their booze from a LIQ location, but the proof will be in the Q result numbers........Another concern: the LIQ stores themselves look very nice from the pictures, but are people willing to pay a premium for the same booze...?.....These exclusive extras like beer and wine tasting, private labels, etc. may not cut it......who cares where you buy your Listerine, Cheerios, or Jack Daniels from - it's the same product - so I think most people will buy these items from the retailer that charges the least for it in their area..........The market seems to be screaming for LIQ to cut the dividend already...... $1.08 / $6.80 = over 15% yield at today's closing price......does anyone think this dividend is sustainable going forward.....?

Personally for me I shop where it is the most convenient for me and where I can find easy parking and in and out in a hurray. So personally I would rather pay an extra $0.50 on a bottle of Jack Daniels then go through Downtown Traffic and fight for a parking spot, to save that. Having friendly and helpful staff is also important to me. I suppose the atmosphere is also important as if I like the place I am shopping in I tend to go back there. I never count pennies when I shop anywhere.

 

 

The problem is the avg joe is starting to pinch pennies, the price of food is going way up, higher grocery bills = less spending money. It seems like LIQ likes to position themselves in shopping plazas next to the grocuery store.. If you just spent a bunch on food you will probably opt for cheaper/less booze or maybe none at all!  But on the flip side of things, less eating out at restraunts and not going to the pub to watch the hockey game = more chilling at home watching the game and buying a 6 pack from the liquor store instead of spending $5 per drink at the pub. So I think this could help offset some of the headwinds. This is a very interesting company at the moment.