Alcanna (CLIQ.TO)

Looked at this a year ago, but thought it was expensive and the dividend was propping up the valuation of the company. Liked their strategy of developing their own brands and selling them in the liquor stores. Dividend yield of 9%.

They are at risk because of exposure to Alberta. Look at this hard in the late summer and fall when we see what the damage is to the economy. They did pretty well because of their dividend yield.

Has been watching this. Has had a good run in the last little while. Thinks a lot of investors are waking up to what they have been doing and the turnaround they are having. The management team that came in is trying to expand their business and grow it after it has been stagnant for a while. This could probably go higher and could have increased dividends as well.

You have to love how this rallies in all the volatility. Has been following this one for the last 2 years and it has been a complete disappointment. Management has done a great job of getting out there and telling the story of what they are going to do. They have a plan in place. He is getting a little more faith that management is going to be able to do what they say. We are only in the first or second inning of this turnaround. Dividend is safe.

Brought in new management. A lot of stores were being operated independently with no central ordering, no creative inventory management, etc. New management have good experience and the ability to take care of the low hanging fruit. The problem is, they do still pay out a lot of their cash flow in the form of a dividend. The challenge is that there are a lot of things going on and maybe not enough money to go around to fund everything at once. He would rather Buy at around $10. Yield of 8%.

(Market Call Minute.) Had recommended selling 9 months ago because the problems it was having with its competition, the BC government allowing liquor to be sold in supermarkets. 10% dividend could be cut.

Doesn’t know how well their US acquisition worked out for them. Liked it when it was largely an Alberta business. When they did their acquisition, he got concerned and sold his position. He would take a close look at what their US business is doing in terms of margins before deciding anything. The market is suspicious of companies that have too high of a dividend.

At an interesting level. People are making a call that the dividend is too high and it will have to be cut. He has a problem with growth and their ability to sustain the dividend, just given what they are doing. Until the momentum shifts on it, he is less inclined to jump into a name like this.

There are rumours in BC that grocery stores will be allowed to sell liquor. That will impact some of this company’s footprint in BC, Alberta, Alaska and a small presence in Kentucky. This stock has a high valuation. Payout ratio is quite high. Very strong, pristine balance sheet.

Had a tough couple of years. Active in the states and some of the surrounding states have changed rules so people didn’t have to cross state lines to get liquor. BC just announced they were going to offer liquor in grocery stores. Dividend is okay but wouldn’t use the word “safe”. Same-store sales growth is nonexistent and probably going into decline this year. He rates it a “very high risk” income stock. 9% dividend.

(Market Call Minute) Not growing anymore and pretty rich in valuation.

They sell liquor in Alberta and BC as well as in one of the states, possibly Kentucky. Facing some competition in BC, which he thinks is a political issue, as well as in Kentucky. Having to reinvest more in their stores to make it more appealing. New CEO is probably figuring out how he is going to right the ship and we should know in early 2014. Won’t be raising the 7.7% dividend and there could even be a cut.

Same-store sales, particularly in the US and to some extent in Canada, have been negative. Offset a little by some new bigger box wine stores they have been trying to open. However, this cannibalizes some of their other stores. Pays a very generous dividend of 7.68%. Unless things change around for them, he is not sure how long that dividend will be sustained.

Recession proof. It has not performed that well but there is a new CEO in place. Management team will probably do the right thing. 7.1% dividend. Prefers CDL.A-T.

Recently bought this. Good territory. Has tapered off, but should be picking up again. There is a gradual recovery going on in quite a few of the yield stocks.