Sir Royalty Income Fund SIRZF

Will a resumption of dividend sink the SP?

[jcw604]

Will that happen if the dividend amount is below expected? Will Jane come out to save the day?

[Robsopinion]

Lembit is blocked by the legal agreement from purchasing more units. So he will not be saving anymore days. 

[wildrunner11]

  lower than expected? What is your expected?

[jcw604]

The SP is almost at the same level as pre-pendamic. It need to be not too far away from the original dividend.

[BlueJay2020]

Nonsense. Firstly, the restaurant industry is vastly different pre-and post-pandemic. The price immediately prior to COVID, reflecting short-term issues, is not a reliable guide of future value.  The average price of the last 5 years is more reliable. Secondly, the market is forward looking.  The short-term distribution will be hampered by the impact of restrictions - it is the long

[Robsopinion]

Someone came in today, at close, and made a buy big enough to bump up the SP. this is not a coincidence. 

[BlueJay2020]

It''s odd.  The whole post-pandemic reboot seems to have stalled a bit for some stocks like SRV, Chrous and others.  Maybe they got a bit ahead of themselves.  Probably just a pause, a period of consolidation, before the next leg up. It still amazes me, though, that people are willing to sell at this stage of the game now that the vaccine roll-out is so advanced. 

[flamingogold]

Recovery stocks may be on pause but we're not done yet. It appears the rotation went back to tech and lately energy/oil, the latter which I believe is going to $100 over the next 12-18 months. Now we wait for dividend resumption news. SRV has never been an exciting stock to own. The last 18 months were off the chart for entertainment. I've already got my share of exciting/risky assets so

[Lazaros]

Respectfully BJ, a $1.20 is extremely unlikely in my opinion. That is almost at the same level as pre-COVID - and even then it was unsustainable with the declining SSS trends; hence the falling share price at the time. SIR has also closed quite a few locations and will have fewer locations to generate the cash for the distribution. It will be very hard for them to generate that same level of cash

[BlueJay2020]

Hi You've completely misunderstood me and I completely agree with you. My point was to respond to the post that said the SP would drop      if the dividend was not restored to near pandemic levels. If it was restored to such, the SP would be $17. The current SP of circa $8 assumes an annual distribution of circa 55-60 cents at a 7 per cent yield.  In other words, a much

[Robsopinion]

We will also likely see dramatic menu price increases. I would guess in the 20% range to account for the new increases in costs. Since we take our cut off the top line it should be a beneficial time to own restaurant royalty units. 

[flamingogold]

Lazaros, I agree with your view. I was even thinking 2¢ to start. I would rather have the board move cautiously and up the divy every few quarters than move too aggressively and have to recut as was the case with the Keg.