Alaris Royalty Corp ALARF

RE:RE:RE:Treasure....

[graffiti99]

Capharnaum wrote: Unfortunately, a new problem file (for cash distributions) combined with the under >1 coverage from a couple of investments will probably send back Alaris to the penalty box. I think they'll come through but share price could suffer from this and go back to the 15s.

In the Q4 CC, they said they knew that Providence had lost their biggest customer but it was planned that way (downplayed it). They certainly didn't make any mention about the distribution being shutdown for them. Then they should have announced it instead of putting it as a note for the shareholders meeting (or updated their presentation).

I'm a bit bummed about the way they've communicated this to shareholders. :(

Nothing to be bummed about if you're an investor (as opposed to a trader). Problem is small, so may not have thought enough of it to report. AD is a dividend generator for me, so I don't focus too much on the stock price. If you invest in AD and hold, then you are essentially betting on Steve King's team on picking small private businesses to support. Invariably with smaller companies, they will hit challenges like this. A few things to remember: Providence may have a very capable management, so they may work out what they need to work out. Also, other partners that Alaris supported ended up surprising to the upside. For example, PlanetFitness was a fantastic selection. And of course, the work outs successfully finalized by Alaris didn't get much coverage in my opinion. The market just focused on the problems. But, with enough time, Alaris was able to get paid out. So, all is all, a good business. I like the idea of owning a business that provides private equity to a stable of small private businesses.