Alaris Royalty Corp ALARF

RE:Valuable information

[laurencelefou]

The two BNC analysts covering Alaris are Jaeme Gloyn and Victor Dri.  There are both based in Toronto.  The Desjardins analyst is Gary Ho, he is also working out of Toronto.
 
Both firms agree that Providence represents ~5% of the carrying value of total investments and ~5% of total run-rate revenues.  As of April that 5% return is in jeopardy.  Gary Ho wrote, "the carrying value of Providence is C$39m or C$1.07/ share (this compares to the C$2.04 drop in the share price today (April 17) and the more than C$3 drop since our note on April 2)."
 
Prior to this event, Alaris payout ratio was 90%, until the issue is resolved the payout ratio will approach 95%.  If any other clients stop paying, Alaris might need to cut the dividend and the stock price will further decline.  This is not the first time Alaris has faced payout issues with one of its clients, it will likely happen again in the future.  This is an unavoidable risk in investing in Alaris.  Investors must consider this risk before investing in Alaris.
 
My initial purchase dates back to 2015.  My investment thesis was to collect the monthly dividend, any stock appreciation would be a bonus.  I am approaching retirement and no longer need to grow my portfolio.  I am happy to collect the dividend, and if 20 years that the road I am still collecting the dividend and the stock price is still in the $20 range I will be happy.  I am aware that a dividend cut is a possibility and I am willing to take that risk.