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Rocky Mountain Liquor Inc V.RUM

Rocky Mountain Liquor Inc. is a Canada-based company. The Company, through its wholly owned subsidiary, Andersons Liquor Inc., owns and operates approximately 24 private liquor stores in Alberta. The Company is engaged in selling beer, wine, spirits, ready to drink products, as well as ancillary items such as juice, ice, soft drinks and giftware. Its liquor store locations in Alberta include Athabasca, Beaumont, Cochrane, Devon, Edmonton, Fairview, Fort Macleod, Fort McMurray, Gibbons, Grande Prairie, Lac La Biche, Lethbridge, Morinville, Rocky Mountain House, Slave Lake, St. Paul, Sylvan Lake and Wetaskiwin.


TSXV:RUM - Post by User

Comment by Fansseon Sep 10, 2021 12:12am
148 Views
Post# 33838470

RE:RE:RE:What do you guys think about the Q2 results?

RE:RE:RE:What do you guys think about the Q2 results?With conservatives inputs, even with the same volume of sales of 2019, the business will do 45 millions of Sales for the year with 1 million in Net income. Adding to this, with conservative negative working capital for the year of minus 100 000$, the business will be doing 1 200 000$ of FCF. 

The current valuation is around 7 times FCF.

I don't know about the inflation and you're making a great point there, but taking into consideration any organic growth and a positive working capital that usually happens in Q3, Q4, we're looking at an even cheaper valuation and I think we have all good reasons to assume positive growth when comparing the first two quarters with 2019. The business is doing more sales with less stores. (29 stores vs 26 stores, 21.972 millions vs 21.082 millions)

I think this is an investment is limited downside and lots of upside in terms of value investing. 
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