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 > Look at the bright side for private equity (Alaris)

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Comment by borne2runon Mar 20, 2020 9:59pm

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Post# 30832632

RE:Look at the bright side for private equity (Alaris)

<< flush with cash >>

Nope, only because they borrowed hundreds of millions from banks for investment purposes.
If a number of those investments go south, shareholder equity could vanish in a flash.

Shareholder equity is currently approx $16 per share.
Market is already discounting significant writedowns.
If Alaris Royalty manages to get through the downturn with only a few scrapes and bruises, then anyone buying in single digits will do very well.
Right now, it's a casino.

The Alaris convertible debenture matures in June 2024 and is trading under $80.
Yield to maturity is approx 10%.

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