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Stockchase Opinions

Garth JestleyLiquor Barn Income FundLBN.UN.TOWEAK BUYAug 11, 2006

Has about 60 stores in Alberta and British Columbia. Prefers Liquor Stores Income Fund (LIQ.UN-T), which is larger. They expect to grow through accretive acquisitions. Still in the process of integrating 8 companies.
$11.15

Stock price when the opinion was issued

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COMMENT
Possible acquisition by Liquor Stores Income Fund (LIQ.UN-T). Lost money in the 1st quarter. Liquor Stores will create better margins.
WAIT
Perfect model for a trust. Located in the best part of the country, Alberta. Has come off quite a bit. Would wait until after the budget later this month.
DON'T BUY
This was a business that depended on the high valuation that they got as an income trust. Not only will they be taxed with no shield, but the ability to make acquisitions has been reduced.
DON'T BUY
Because of the change of income tax on trusts, they can no longer make acquisitions, so the multiple will shrink over time.
DON'T BUY
This sector has very low yield. Valuations are pretty high. Competition from a similar company. Growth by acquisition.