Alaris Royalty Corp ALARF

Ok Earnings

[Capharnaum]

Earnings are fine. However, since Planet Fitness is looking at redeeming close to 50%, I hope they do announce at least a new partner during this quarter.

[gvixid]

Earnings were in fact very good . Normalized EPS beat analyst predictions. Business is sound and div is covered. So we should be going up. But of course the market is focused on the SM and KMH write-offs and so we drop. These are one time events and now the books are fully cleansed of past failures. Disappointing to see it in the red today.

[nini222]

You can't fault people for believing that these are NOT one time events....they may be but they may not be, that's why this is yielding close to 10%, it is for better or worse a high risk equity to own.

[gvixid]

I agree it's not a low risk stock. But you can't say these write offs aren't one time events. They've now fully booked their losses on KMH and SM, so what's left? The remaining investments are all performing to expectations. Unless something drastic suddenly happens, then it's fairly clear that the worst is now behind them.

[nini222]

At a certain point in time KMH and SM were performing to expectations, there is always going to be underlying risk with their partners - I mean that is to be expected - companies that pay 15% for capital are not going to be steady eddy cash cow type businesses...I think I'm stating the obvious here but they will likely have writedowns on their other investments at some point in the future