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

RSI vs LIQ

[Goldbuggy1]

I like to keep an eye on Rogers Sugar INC and compare that to LIQ from time to time. RSI refines and makes Sugar while LIQ sells booze, and totally different products, but yet they share some similarities also. Before the price drop LIQ and RSI had about the same Market Capital. They were both Unit Trust Companies until they were both forced into being a Corporation. They both pay high Dividends (RSI 8.93% and LIQ 14.77%). They both pay more in Dividends then there Net Earning per Share. They both are close in P/E Ratio with LIQ at 14.4 and RSI at 16.0. They are both have major interests in Alberta. They both are facing tougher times, with a weaker Alberta Economy for LIQ and a collapse in Sugar Prices for RSI. Yet through these tough times RSI dropped 50% in share price and LIQ dropped 245%. This is the part that doesn't add up. Let's take Inventory here! You can't buy Oil Companies, because of the Oil Price collapse. You can't buy Potash Companies, because of the Potash Price collapse. You can't even buy Sugar Companies, because of the Sugar Price collapse. You can't even buy a good company in Canada, because of the Canadian Dollar collapse. No small wonder why our Stock Market dropped over 200 points yesterday and over 20% this month. At this price I say the smart money is in LIQ. There profits may be better or may not be as high as last year, but at least they will make a profit and you won't lose your shorts. There is a very good chance you can collect good Dividend while you wait also as they have been paying one since 2004.