Alaris Royalty Corp ALARF

Parameters to assess Alaris...(add or eliminate )

[bbzzzz]

Simply put, the ability to maintain current investments and add to solid new investment partners is really the underlining question looking into the future.

Can management execute or is it time to change strategy? One more default can send this equity into a real nose dive and the possibilities of that are ____ % - check your crystal ball !

 What happened to the possibility of a dividend increase?

Is there really a chance to collect either partially or whole on the SM write off considering they are a going concern with 800 employees with a backlog of business?? Was this properly communicated to the investor community? Please read the analyst conference call ( at Seeking Alpha or website).
My impression was that SM is now written off the books but not forgotten. It is being followed up on with the intention to collect in the near future as business conditions change . 
 I believe mgt. could have communicated this in a more investor friendly manner so that market meltdown would not occur. 
 Just some of my thoughts as I ponder to add or eliminate to this position in my portfolio.

 Thanks for allowing me to share my thoughts !
Tedz

[gvixid]

Ted's, I too got the impression that mngt intends on trying to recoup some of the 50M from SM. And so I find it hard to understand why they wrote off the entire amount now. I'm not into conspiracy theories, but it does feel like manipulation. As if they wanted to knock the price down rapidly to attract new investors or buy more themselves.

[bbzzzz]

Yes, this should be a good question to address to mgt.  Could they have handled the write off of SM in more investor friendly manner??

[BSdetector2016]

I think they wanted to deliver the turd before tax-loss gets into full swing. That way they can start 2018 fresh, or with less stink.

[maypeters]

Management has always been aggressive about writing off losses from partners. Throw in the pretty big taxable gains from Sequel redemption and it was pretty much a given that they would write off SM completely. Deferral of taxes would be my first educated guess.

[griffp]

An aggresive write off should be seen as is positive ?? Hmmmm? Granted, the tax advantage from the recent capital gain was crystalized but writing off 1 out of 7 of any key portfolio leaves me less really worried..  In reality, this decision was the culmination of a serious financial blunder by the senior administrative and financial leadership.   I invested 5% of my initial

[bbzzzz]

Ok, with all the negative comments can one assume everyone has maximized their capital loss on AD for the year or .....is this the contrarian signal to add!!  Can mgt.execute with no further problems and add new investments going forward? There has been insider buying by Mr.King , is this a buying sign? Can we use the "buy when there is blood in the streets " analogy here

[Bailey88]

I suspect Mr King will have even more opportunities to do some more insider buying when he is forced to cut the dividend. I don't want to be flippant because this is serious for many of us who have depended on Alaris for income, but  I can't see how the cash flow of the remaining investments will be able to cover the dividend going forward. Also Alaris is in no position to buy back

[maypeters]

I did not understand what you wanted to say. Are you saying that the writeoff will lead to them not being able to cover their dividends ?  It obviously hurts when the deal does not work out as expected but not sure what you are trying to say by saying that you cannot see how the cash flow for the remaining iinvestments will be able to cover the dividend going forward.  I would highly

[Bailey88]

I made my comments with direct reference to the Q3 financial statements and conference call.  As stated in the conference call,  I heard that the dividend will not be cut Q4....... IF new deals are made going forward.  Even with new investments, it will take time for any investments to generate cash flow.  I don't have much control over the future but the AD Q3 report shows

[jjeerryy]

Bailey88, the markets can be tough at times. Then we come in here and post to people who seem to not be able to read the written word.    Stick to your guns, you seem to have things under control at this time!

[babedinkleman]

This post has been removed in accordance with Community Policy

[nedstar71]

Bailey's handle created just two days ago to post on this board alone and coincidentally posts complete nonsense and jerry applauds him. Um yeah.

[nedstar71]

And I might add, when newly created posters show up talking misleading nonsense, it's often a sign that the bottom is near or already in. I remember with DIV when it was in th $2 range all sorts of new posters were popping out of the woodwork trying to create panic and fear with nonsense and incorrect info. It worked on some who panicked and sold, and for some of us it allowed us to add to

[maypeters]

I would recommend to stop using Morningstar for Canadian stocks and start using SEDAR to go through the financials. The payout ratio is below 100% even with existing cash flow. New investments and the resets starting Jan 1, 2018 of course help. Once the deal is done the cash flow starts right away and does not take time. It may take time to complete the due diligence and win the deals but once

[bbzzzz]

Maypeters, I believe you are on the correct side of the information derived from the conference call as well as the financials. I pressume everyone makes up their mind to sell or buy based on their own information and their ability to absorb the information presented to them as well as the source of that info. The bottom will be hit once all those that wish to sell will have sold . I pressume

[TickerTwit]

I've found that some of Morningstar's material isn't 'analysis', it's just formulaic response, not necessarily appropriate for the sector in question. In this case, it might be that they calculated payout ratio on an earnings basis rather than on a distributable-cash basis. The result can be dramatically different. I haven't gotten to AD's recent numbers yet, just

[TickerTwit]

I looked at AD's numbers for the past four quarters. (1) On an earnings basis, the approximate TTM payout ratio using a short-cut formula is 261%. So 270% is not unrealistic. I'm satisfied now that I know where Morningstar got its number: the earnings-based payout ratio, PR=[Div/E]. The weakness of this formula is that a single large non-cash item can render it nonsensical. (2) Dropping

[jjeerryy]

The highlighted prargraph below tells it all and gets to a very important point. Thank you.

[westcoast1000]

Thanks for that informative comment, TT.