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

RE:RE:RE:Another Good Article on Booze in tought times.

[OilMoneyAB]

Goldbuggy1 wrote:

OilMoneyAB wrote:

 

Goldbuggy1 wrote:
For Liquor Retailers, it all sort of all boils down to this. In tough times people have less money to spend but they still buy alcohol. There basket size may be smaller, and they may go to cheaper brands, so this would cut into sales. But on the other hand, people who used to go to high class restaurants for drinks and dinner, and then to the bar, are now staying at home to drink with friends. So even though the basket size may be smaller, and they are spending less in Retail Liquor Stores, there is also more people doing this, which increases sales there. I don't know if you can say that alcohol is Recession Proof. I don't know if anything is. People still eat but I bet they are tot putting the same number of T-Bone Steaks in that cart either. But what you can say for sure is that Alcohol is at least Recession Resistant. https://www.macleans.ca/news/canada/recession-hic-what-recession/

 

 

I could not agree with you more on this.. and so what if we have a slow down in sales for 1 or 2 quarters. Will that really be the end of the world and we declare bankruptcy? I don't think so. Need to keep eyes open on the 1, 2, 3 years out. And 3 years out looks pretty exciting with the US expansion. I am a new investor in this company finally got a position in today. Wish I got in at $6.50 when I first started researching this company but it's ok, if it drops back into the 6's I will buy more I just wanted to lock in some at these low prices. The US expansion is what sold me on this company, any Canadian buisiness doing operations in the US and bringing those dollars back to Canada is huge. And if for whatever reason the CAD value goes up, that will be a win win because that means oil is going up, and we all know how much this stock loves oil. 
 

Yeah! It is difficult catching a falling knife. I never thought we would see $9 again, and then $8, but there we sat at $6.50. We have had 3 days of decent gains but I haven't seen huge volumes with short covering. So they may still pick away on this stock until we get more positive news. But there does also seem to be more resistance now to. I think you are correct in that it is pretty difficult for this company to lose money. The only possible cause I can see this company getting into financial trouble is if they continue to borrow heavy on Revolving Credit, and then Interest Rates start to go way up. But I can't even see and interest rate increase this year alone, let along going way up. With a Prime Rate of 0.5% it might be a good time to sell a pile of Debentures at a locked in lower rate and use this cheap capital to buy back shares and expand the company stores.

 

 

I do like the idea of buying back shares at this cheap price, it will save a huge amount of money on div payments. And who knows maybe set up up for a small div increase once we have 12+  new stores operating in the US, and signs that the Alberta drinking market has not "crashed" if we had say 22 million shares, and maybe a 11 cent divy.