Liquor Stores NA update September 17, 2015

Liquor Stores NA is updated and remains rated Strong Sell, now at $11.25. It appears to have a highly attractive dividend yield at 9.6%. However this dividend appears to exceed its earnings by close to double. It would appear to be at a high risk for a cut to the dividend unless it can sell off some assets such as some of its licenses at a good price. Its cost structure appears to be too high. It appears to have bulked up its management team in anticipation of a major growth initiative but it is not at all clear that it could finance such growth.