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

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Capex

[Storman]

Hey Double. 

I think you are right on all counts.

Regarding dividend payments I have the feeling the founders of this company have promoted through the years a culture of rewarding shareholders with dividends instead of capital appreciation and that
dates back from the time this comapny was an income fund. Until today the board seems still very hesitant to even consider cutting dividend and you can sense that from listening to their response to any question that suggests dividend cut.

On the other side I agree that LIQ should stay the course. Alcohol business will make money at the end of day. The board doesn't seem to be backing off soon from paying dividend.  If this management is agressive we can tell in the next couple quarters from the way they will follow up on the US expansion. I have been holding this stock for about five years and by previous comparaisons the stock looks underpriced to me, and the single reason I can attribute it to is low oil price. I believe this stock has no way to go but up but it might take a while considering the current economic flimsiness.

Now, splitting the stock up or down is not a great idea and it has really no benefit. I would go against it and concentrate on promoting good management practices like cost cutting and expediting USA.
expansion. 

Certainly, this company just cannot go bankrupt, and I am mildly optimistic the stock will recover may be in about two years.