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

RE:Capex

[Goldbuggy1]

mercatos wrote: I dont think we are going to have any share buy backs in the next 2 or 3 years or ever....if anything LIQ should go through a share split and then file a shelf prospectus.  Raise more capital with a lower dividend/share

Anyway what I really would like LIQ to stop doing is investing in Alberta.  Put a freeze on any investments, store freshening, or buying any other business like RUM.... Close down unprofitable stores immediately.  Spend freeze for 2 years would be a start.

The capital would be best used investing in new store openings in the US prefereably eastern US.

Also lets not forget that US market is $200 billion opportunity vs aprox $20 billion in Canada.  I just wish LIQ would be more aggressive in there intent to expand in the US.  By sending a message of diverting Capex to US expansion would show investors strong intent.  I also would like LIQ to have a more aggressive tone to the market on their growth plans, frequent news releases of new stores opening, record breaking sales...etc...

I think the company's expansion into the USA has done quiet well recently. Early in 2015 the company proposed to open 10 new stores in Canada and the USA by the end of 2017. Since then in Canada they open some small Convenience Store somewhere and the end of the 3rd Quarter, which I don't really count. But last summer they opened 2 large-format stores in Kentucky. Followed by there 51% purchase of 2 large-format stores in New Jersey in January. This summer they will also open 2 large-format store in the N.E. USA. It is difficult to compare a large-format store in the USA compared to a smaller one in Canada, as we don't have all the facts and figures yet. Can we say 4 or 5 stores to 1? But we do know that once LIQ buys out the other 49% ownership of there New Jersey Stores (which I am sure they will do at there best opportunity) they will generate about $50M US in sales, or about $70M CAD. Our total sales for 2015 should come in at about $730 - $750M. So adding $70M to this pie from just the 2 stores in New Jersey is a big piece and about 9.5%. Now if you add the 4 new Large-format stores in Kentucky and also including the N.E. USA you are probably looking at growth from just the USA during that year at around 15%. That's not too shabby when you realize that Canada and the USA grow between 2% to 3% in good years.