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

RE:Goldbuggy1

[Goldbuggy1]

ffhwatcher3 wrote:

Goldbuggy1

You are reading Sedar now, that is good.

My numbers are from the last financial report, Dec 31, 2015.  In their MD&A, they disclosed they had draw down the credit facility even further after their year end. Good reading.  The liability was there sitting on their income statement, they just choose to use their credit facility to pay it off...suggesting they didn't have enough cash available...which isn't great.  They are still mostly using their credit facility to fund their inventory.  I am sure you understand how the requirement for Alberta and the sales of alcohol, correct?  Most companies can buy product from suppliers today, pay in 30 or 60 days and in some cases have it sold and paid for by the time the payable is due (very efficient use of working capital).  Since you have such a thorough understand of this company due to your thorough reading on Sedar.com, you understand LIQ situation in Alberta....

I am following this but haven't owned it in months. It could be a good investment someday, so I follow it. 

Good luck and keep reading Sedar.com and no one is hiding anything (actually, technically all public companies are, especially in bad times...unfortunately).  Try reading up on Valeant to get a full understanding of hiding stuff, then you will see what hiding really is.

 

Well actually none of this information I found came from SEDAR, and I think my Link proves that, but nice try anyway. You are living proof why actually. You swore that LIQ's TOTAL Debt was $130 M and you were so sure as this information you got came from SEDAR. But I recently proved to you it was actually closer to $196 M in debt, and thus your outdated information was wrong. Of course I know that for LIQ to buy liquor in Alberta they need to pay cash first. I also didn't get that from SEDAR either, but do wonder why you just didn't come out and say this. But what I wonder mostly is why you are so fixated on LIQ having $157 M in Inventory and why that is so special and different to you than anything else they owe money on. Besides being collateral for the bank loan, like every thing else LIQ owns, there is nothing special about it. That $157 M in inventory just sits in a box in the store room waiting to be picked up and dusted, and then put on one of those new $2.5 M Oak Shelving this company bought. It isn't worth anymore money then what the company paid for it, until it sells. It also doesn't collect any money from interest just sitting their. In fact if it is bought by borrowed money, like the way LIQ buys, it cost money to just sit there, and the longer it sits the more it costs. It is also not like the company can sell this inventory then put this money in the bank or pay off debt. To stay in business they have to replace it, which by now hopefully comes from working capital. No! Nothing special about Inventory except for this company it is a long term debt like anything else. As to LIQ, it could have been a very interesting story and play and a good stock to hold and put on the shelf. But I have no interest in this company as long as this management remains in place. After recent events and ongoing since he started working here, this CEO should have been shown the door a long time ago already. As to the final word on SEDAR I have used it in the past many times and probably long before you have. I think every new investor should go there and get the feel on digging up information on a new company they plan to invest in. But if you have to go there all the time to get all your information, then this company simply is not worth owning. Glad to see LIQ is changing there ways now and are now at least posting a lot of this information now. They always said in the past they would, but until recently never did.