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 09, 2019 12:20pm

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Post# 29206643

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

Am I missing something with you two? AD is my largest holding and i trade around it when it gets ridiculously cheap (keeping my core position throughout). I have complete faith in Mr King and a recovery to 80% or below. Whats your problem exactly??

We will see what the ratio is next qtr. (it will still be well above 90%). Oh and BTW they CUT the divy in 2009. Are you saying they did great due dilegence when 3 of their clients stop payments or went bust?? You cant run the company on IF - the wrote it off and anything would be a bonus (but a one time bonus - which really amounts to a bonus of lost opportunities or screw ups)

They do make mistakes you know. If it is so great why is market so skiddish.

Capharnaum wrote:

SunsetGrill wrote: Out today @ 17.49 on the small avg. down position i took in Dec. @ 16.50 as i mentioned earlier last week.

So Caph (or Dickey "I'll never post here again" Mouse" Seriously?? 80%. Put you pen to paper again. You think Mr Kings history is one of "if we get the money owing us" and IF "BCC does deploy there other 2/3 monies ". That is no way to run a royalty company that is flirting ever so close to 100% and he has never operated like that in the past. Also, they dont currently have a credit line for 150 million, not saying they cant get it but they dont have it. Thats allota ifs

I too think he should have waited; but I think he wanted to throw long term holders some of whom have seen a 50% capital erosion a bone. Dividened aristocrates and ETF's?? I highly doubt it by raising 1.75%

Happy to hold this long term and will trade around it if it hits below 16.75 again

Eagerly awaiting Dickie's response from EPCOT

Glad to see you're out. You really should put your money in BNS and leave Alaris alone.

Alaris does have about another $140M (CAD) to invest at the moment.

Money written off and owed was already recuperated in 2018 (but it's so easy to ridicule?), they should get some more back in 2019. BCC will deploy the rest of the capital, at least another tranche in 2019 if you believe anything Alaris says (but I know you don't... which is why you should really just stop following the stock).

Despite all the problems and the tightness of the dividend, the management has been able to always fund the dividend through the years. You can laugh it off but that's pretty good considering all the negativity floating around.

As to the payout ratio... well it's like this:

Distributions and interests for 2019: $106.5M
2019 Resets: $4M
$100M invested 2019: $14M
Total: $124.5M
Approx after SG&A, tax, interests: $75.8M or $2.08 per share
Approx forward payout: 1.65 / 2.08 = 79%

That's without other potential recoveries (SCR/Kimco, KMH, Group SM), without 2020 Resets either. The only "if" is the new invested money for 2019 but considering what they've done in the past five years it seems a given they'll hit that number.