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

RE:RE:LIQ View on the Dividend

[Goldbuggy1]

freedom-1970 wrote: Great information on this board !

Ask yourself can they survive Alberta oil cycles ? Guess what not the first downturn since LIQ paid a divy. Maybe the third cycle now, but the board is expanding outside Alberta and the changes are only positive . 

Chance like this to buy will not last forever.

You are absolutely correct about the Alberta Oil Cycles. In fact it was because of low Oil Prices that the Alberta Government decided to Privatize it's Liquor Stores to raise needed cash and when LIQ got started. The decision came in September 1993, and by March 1994 almost all of the Government Liquor Stores were replaced. In the following years of 1994, 1995, and 1996, marked the worst 3 years in Oil Price History. But LIQ survived this and kept growing. Then the years 2002 to 2004 were also not good years for Oil Prices. Oil Prices also crashed again in 2008 along with the Stock Market due to American Banks having money problems. So this in itself is proof that LIQ can survive these cycles. The companies decision to diversify outside of Alberta is not only a practical decision but also a wise one. I think what you will find now that with the 2 new large format stores that opened in Kentucky last summer, along with the 2 new large format stores we purchased in New Jersey (hopefully 100% owned very soon) and the 2 planned large format stores that will be opened this summer in Connecticut and Massachusetts, that over 50% of our sales will come from outside of Alberta. That is not to say that Alberta is a Dead Horse. They still make plenty of money their. But if a company can diversify by continuing to grow its stores in different locations, sell a product that is Recession Resistant at least, and pay a good Dividend form a long proven track record, companies just don't get better than this.