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

RE:RE:RE:BONDS HAVE NOT MOVED !!

[Goldbuggy1]

buyvalue1 wrote: Dyod

intresting post

from divy NR, we don't know where the cash came from to pay it out. 

Quite the burn rate on their operating line if their going to tap that until end of 
Apr for divy and bond payment. 

Mar. Q4 numbers will be stale dated. You'll be biting your nails every month for the NR. 

If they are breaking even today, I'd be surprised . So, added stress could be 
on the operating line if they are not profitable now. 

The JD lovers are probibily down grading to a CDN low margin brand. I would say that goes
for most of their premium offerings. 

When the Op Line is tapped, where does income come from to operate
and pay out such a unsustainable divy. The market (institutional investors ) told mgmt
in Nov, something doesn't add up and pounded you down 
on huge volume. 

As as they get closer to the end of the line, the bonds will
break down if divy keeps up. 

They are not (imho) clearing 15 percent . Wouldn't you rather them
redirect that money elsewhere internally ???

If one is looking at Net Earning per Share and comparing that to the Dividend Payout, then one is looking in the wrong place. The C.E.O. of this company has said so himself, in the past. The main indicator for this company is "Adjusted Operating Margin", which in Layman's Terms is called "Profit". So Adjusted Operating Margin is income left over after paying all direct and indirect costs but does not included adjusted operating expenses like legal fees for a purchase of a company, or one time Retirement Package for a Director. But it does include Depreciation, which is non-cash expense. So it is from this Profit that Equity Investors are paid their Dividend as well as Debt Investors, like Bank Loans and Bond Payments, and also the Tax Man. As of the last Q3 Report the 9 months ending in September for Adjusted Operating Margin was $25.923. For 27.5M Shares this equates to $0.98 / share. Dividends paid in this period was $0.81. I am not claiming that LIQ is earning enough to pay for everything. I am just saying that it is not as bad as it first looks. Especially for people who just use Net Earnings per Share. https://www.investopedia.com/articles/stocks/08/operating-margins.asp?header_alt=g