Topic: How To Invest

Q: Pat: What do you think about the plan by Alcanna (formerly Liquor Stores N.A.) to branch out into marijuana sales? Is the stock a buy? Thank you.

Article Excerpt

A: Alcanna Inc., $9.75, Toronto symbol CLIQ (Shares outstanding: 37.1 million; Market cap: $357.6 million; www.alcanna.com), changed its name from Liquor Stores N.A. in May 2018. The company operates 229 retail liquor stores. Of that total, 173 are in Alberta, 33 in B.C., 22 in Alaska and one in Connecticut. Alcanna’s banners include Liquor Depot, Liquor Barn, Brown Jug, Wine and Beyond, and Wine Cellars. The company’s sales increased 4.9%, from $630.1 million in 2012 to $661.0 million in 2013. Sales then rose 5.0% in 2014, to $694.2 million, before rising 7.5% in 2015 to $746.4 million. Alcanna saw sales jump another 9.6% in 2016, to $817.7 million. Most of that growth was achieved through acquisitions in the U.S. In 2017, the company sold most of its U.S. operations (see below), and revenue fell 24.0% to $621.4 million. Alcanna’s earnings fell from $0.82 a share (or a total of $18.8 million) in 2012 to $0.49 a share (or $11.3 million) in 2013. They then…

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