RE:RE:The Problems: Oil Prices and Alberta
According to their latest Presentation dated Sept 2015, 74% of LIQ sales was in Alberta and B.C......Now, this may gradually change with the new USA stores, but the big concern is still how well the Alberta stores do and whether any increase in earnings in the USA may be offset by declining profitability in Alberta (after the associated costs of getting these stores built or, in the case of the NJ stores, paid for and integrated is done).........Also, I'm wondering how price-competitive LIQ is vs. the competition in Alberta...?....Jack Daniels is the same no matter where you buy it from, and though LIQ store locations look great (at least from pictures I've seen), are their competitors offering the same products at lower prices, do people really want wine and beer tasting, private label offerings, fancy stores etc. going forward in this economic environment...?......As for Suncor, they are an integrated O&G company with high-margin refineries and downstream retail (gas station) operations across Canada, plus operations in the U.K, Norway, etc. The Alberta oil plays are only one aspect of the company - Suncor is the largest integrated O&G player in Canada, has a great balance sheet, lots of cash on hand, and actually increased their dividend last year - no comparison to LIQ in my opinion.....