Sir Royalty Income Fund SIRZF

Nice Summary Here

[Fabozzi]

https://www.canadianvaluestocks.com/sir-royalty-income-fund/#more-2175

[BlueJay2020]

Yep, that pretty much sums up what we have been saying for a while. i am beginning to think the lowball offer was little more than a tactic to alert to how undervalued this stock is!

[flamingogold]

Both "known" offers are lowball and opportunistic. The minimum valuation in that article puts the price at $7.85.

[lostcauses]

Thanks Fabozzi for the link, nice write-up. Which one do you think is the most likely to happen ? 1 - Maybe SIR goes bankrupt. This probably isn’t great for SRV unitholders, at the very least it is another undetermined amount of time without receiving distributions. 2 - Maybe SIR realizes it isn’t going to be able to steal SRV and raises its bid. SIR is the buyer who can bid the most

[Fabozzi]

Logically 2 makes the most sense.  Perhaps the biggest impediment now is how much of a bump in price SIR would have to make in order to get something done.....It would make the initial offer very clearly opportunistic and reflect poorly on them in my opinion.  I think 1 is unlikely as there is interest in the sector as longer-term focused investors look past the pandemic.  Let's

[flamingogold]

"It would make the initial offer very clearly opportunistic and reflect poorly on them" Too late there's no saving face now, it's quite obvious they are trying to steal this from us

[tkirk62]

Full disclosure, I wrote that blog post. I agree it's unlikely SIR Corp goes bankrupt, but I don't think it's out of the question. If you add the deferred royalties, deferred interest, and deferred rent to the debt total, SIR's debt is like 10x 2019's earnings before interest and taxes, pretty high. SIR realizes it is just kicking the can down the road, every month more