Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Bullboard - Stock Discussion Forum LIQUOR STORES NA LTD 4.70 PCT DEBS T.LIQ.DB.B

TSX:LIQ.DB.B - Post Discussion

LIQUOR STORES NA LTD 4.70 PCT DEBS > huge exchange profit is excluded from earnings
View:
Post by d_trump on Jan 19, 2016 11:20pm

huge exchange profit is excluded from earnings

As the CAD depreciates, LIQ's US assets generate a significant exchange gain (ie value of inventory held in US).  Under GAAP this amount is NOT included in earnings but rather added directly to retained earnings.  If you look at the Q3 income statement you will see their ytd net earnings of $6,416 and then "other comprehensive income" of $13,089 for total "comprehensive income" of $19,505.  Even though it is not technically included in EPS, it is real and it bolsters the balance sheet significantly.

Their balance sheet is in great shape - their long term debt is almost entirely offset by their working capital surplus (largely inventory).  Market cap is now $180M or about $720,000 per store.  The average store sells $3M annually.  $720M for $3M sales is a joke.  Retail businesses are usually valued at about 1 times sales.

Unless their sales are cratering I see no need for a dividend cut.
Comment by Goldbuggy1 on Jan 20, 2016 4:37am
You raised some very good and interesting points here d_trump. Inventory is almost equal to Long Term Debt. The company has $150M Revolving Credit Agreement with several bank of which $66M was unused as of the beginning of November and before the New Jersey Deal. So debt then was about $84M and that would be equal to just over a month supply of inventory the company would carry all the time. So L ...more  
Comment by kijiji on Jan 20, 2016 8:16am
keep pumping boys... the market will need a stiff drink soon with all the turbulence going on....and today looks like it will be rough too...
Comment by Goldbuggy1 on Jan 20, 2016 6:57pm
I don't think that people who show this stock in a good light can be classed as "Pumping" this stock, because anyone who knows the history of this stock and who has followed it, would know there is no need to do that. For example since this company went private in 2004 with an IPO, this current price of around $6.50 is the lowest in the companies history over 11 years. Not just ...more  
The Market Update
{{currentVideo.title}} {{currentVideo.relativeTime}}
< Previous bulletin
Next bulletin >

At the Bell logo
A daily snapshot of everything
from market open to close.

{{currentVideo.companyName}}
{{currentVideo.intervieweeName}}{{currentVideo.intervieweeTitle}}
< Previous
Next >
Dealroom for high-potential pre-IPO opportunities