Alaris Royalty Corp ALARF

Industrials Conglomerates

"Alaris Royalty Corp is engaged in investing in operating entities. Its operations consist primarily of investments in private operating entities, typically in the form of preferred limited partnership interests, preferred interest in limited liability corporations in the United States, loans receivable, or long-term license and royalty arrangements."

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Alaris Royalty Corp > Parameters to assess Alaris...(add or eliminate )

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Comment by TickerTwiton Nov 15, 2017 6:49pm

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Post# 26972201

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

I've found that some of Morningstar's material isn't 'analysis', it's just formulaic response, not necessarily appropriate for the sector in question.

In this case, it might be that they calculated payout ratio on an earnings basis rather than on a distributable-cash basis. The result can be dramatically different. I haven't gotten to AD's recent numbers yet, just throwing in this possibility in case it explains the 270%.
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maypeters wrote: I would recommend to stop using Morningstar for Canadian stocks and start using SEDAR to go through the financials.

The payout ratio is below 100% even with existing cash flow. New investments and the resets starting Jan 1, 2018 of course help. Once the deal is done the cash flow starts right away and does not take time. It may take time to complete the due diligence and win the deals but once the deal is completed - cash flow starts.

At no point of time has the payout ratio been at 270% and if you believe that it was at 270% for 2017 then you should rethink your analysis or the source you are using (Morningstar in this case).

# I am beginning to wonder if most of the sellers are depending on wrong info like 270% payout for 2017 etc. Anyways it gives me an oppotunity to add so am not mad about it.