Alaris Royalty Corp ALARF

RE:RE:RE:RE:RE:RE:Parameters to assess Alaris...(add or eliminate )

[maypeters]

I did not understand what you wanted to say. Are you saying that the writeoff will lead to them not being able to cover their dividends ? 

It obviously hurts when the deal does not work out as expected but not sure what you are trying to say by saying that you cannot see how the cash flow for the remaining iinvestments will be able to cover the dividend going forward. 

I would highly recommend listening to the Conference Call. I will be adding more of Alaris. Seen drops like these before an it will not be the last time. Its a pretty misunderstood company but Steve and management know what they are doing and have been doing it successfully for 14 years. 

From the Conference call: 

Since Group SM hasn't paid as much in the way of distributions over the past two years, this has no impact on our dividend sustainability, nor our payout ratio.


Steve will not be forced to cut the dividend especially with more deals before year end as per CC:

In terms of future employment, we do expect the combination of new partner and follow-on deployment opportunities between now and year end. That should put us in a position to exceed the highest deployment year in Alaris' history.

Some problem files should be cleaned up: 

For Agility, while challenge to pay current distributions over the last two months, we continue to work on a strategic plan that will see us get our capital plus the premium and all unpaid distributions and we do expect that over the next 60 days.


Resets should be coming Jan 1, 2018 for some of the businesses as per CC: 

Planet Fitness, Federal Resources, Providence, and Sandbox each up between $1 billion and $1.5 billion and that's as we get closer to that max reset we're expecting for each of those businesses Jan 1 of 2018.

Bailey88 wrote:
I suspect Mr King will have even more opportunities to do some more insider buying when he is forced to cut the dividend. I don't want to be flippant because this is serious for many of us who have depended on Alaris for income, but  I can't see how the cash flow of the remaining investments will be able to cover the dividend going forward. Also Alaris is in no position to buy back shares given the booked cash has reached unprecedented lows making new agreements/investments by Alaris somewhat limited.   For sure, tax loss will start working into the chart but I for the life of me, I don't see a sliver lining in the short term.  Hopefully someone else can paint a more positive picture...?