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 > Under valued

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Comment by SunsetGrillon Jan 04, 2019 12:43pm

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Post# 29186896

RE:RE:RE:RE:RE:Under valued

Whatever - Thanks for the lesson on a ROYALTY co. and BTW their historic ratio is below 80% and Mr Kings ideal is about 60%. I guess you have not read my numerous posts on this company in the past. Let me ask you this... If there largest partner went bankrupt tomorrow - what would happen to the stock? AND what would happen to the divy??

Capharnaum wrote:

SunsetGrill wrote: Dude - they have a >90% payout ratio. You dont think that makes a few managers a bit nervous (he ll it makes me nervous). One thing goes wrong and Kaboom. Please dont say you think AD is a sleep at night holding over a bank (which increases divy yr after yr by as much as 10%) AD divy increase <2% over 4 yrs likely).

They better get growing or they are in big trouble

If you don't like Alaris, maybe you should just move on...

Alaris pays most of its earnings in dividends, that's what they do. That's why their yield is 9%+ and not 4.5%. Hence their payout is high (imagine that... it's why they created Alaris).

Just like I posted, they have a better growth profile from built-in collar growths to their deals, extra profit on exits, etc. You may not believe it, so just don't invest in it and move on.

As to the divy growth, you're right, the lower the payout, the easier it is to increase, but that's like math 101... You may disagree that Alaris has better growth profile at this point than the banks (and if you do, I suspect you're not a shareholder and that's fine) but unlike you I don't spend my days on stocks that I don't believe in. It's pretty easy to come up with drivel on any stock at all.

As to growth figures... I sure hope they hit the growth numbers cause I want share price appreciation, but to say otherwise they're in "big problems" is just baloney. They have got over the hurdles, they've got about $50M (USD) waiting to be deployed this year that's already signed, their major investments don't have other creditors meaning they have priority (on $) if anything goes wrong, etc. The shares are trading at an historical low in terms of share price / revenue per share.