Diversified Royalty Corp T.DIV

Alternate Symbol(s): BEVFF | T.DIV.DB.A

Consumer Cyclical Auto & Truck Dealerships

Diversified Royalty Corp. is a multi-royalty company. The Company is engaged in the business of acquiring royalties from multi-location businesses and franchisors in North America. The Company owns Mr. Lube, Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions and BarBurrito trademark. Mr. Lube is the quick lube service business in Canada, with locations across Canada. Mr. Mikes operates casual steakhouse restaurants primarily in western Canadian communities. Nurse Next Door is North America’s growing home care provider with locations across Canada and the United States as well as in Australia. Oxford Learning Centres is a franchised supplemental education service. Stratus Building Solutions is a commercial cleaning service franchise company providing janitorial, building cleaning, and office cleaning services primarily in the United States. BarBurrito is a quick-service Mexican restaurant chain.

TSX:DIV - Post by User

Diversified Royalty Corp

Bullboard Posts

Comment by maypeterson Nov 05, 2018 4:48pm

60 Views

Post# 28926867

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Sell off has a lot do with margin calls

I agree that at some point management has to decide if there is a market for this strategy or not. It can happen that folks are not willing to play along when they have other options available and money is cheap.

Good concept but wrong time is possible.

In a rush so will read your comments again at night.

babedinkleman wrote: I'm not so sure.....patience keeps you stuck in a stock thats doing nothing (or in this case less than nothing) while good stocks are actually executing and reacting accordingly. At some point the patience has to be rewarded. They've had this model for 5 years and the stock is basically now flat. At the rate of the decline from levels earlier this year it will have to move on the next deal.....like up 30-40% just to get us back to where we were 8 months ago and with one less deal. That just isn't good.
It does somewhat disturb me that mining dude said management is still adamant this royalty model works.....given what they haven't been able to do and the share price of the stock. If the share price is in the toilet and you can't close far more deals than you are doing the model doesn't work for a publicly traded entity. Take it private or whatever. It scares me to think they may not be willing to concede that they DO have to pivot sooner or later.....probably scares the market too. Damn I like that word pivot. I do have to say at these levels downside has to be limited....but at some point it get's tiresome having to have that as the only 'good news'. I cringe every time I have the stomach to check the share price of this junk.
P.S. you said you were already up to 70K shares a week ago......we'll call it a senior moment ;-)

maypeters wrote: Patience is key and lot of investors are not as patient as they used to be.

Did give me a chance to add another 15K shares today at 2.69. Am up to 60K shares now.

The stock will move on the next deal along with divvy increase. Till then we sit tight.

GLTA

Mining_Dude wrote: Decisive Dividend is a completely different model than DIV (royalty vs. actually owning the business) which comes with a different (higher) risk profile as well. Coinciently, they have more or less the same yield.

Alaris, which had a brutal year last year, is the type of company that does deals and DIV management have been carefuly to point out that that's not what they want to do.

When you talk to DIV management, they are adamant that the royalty model works and is getting tracktion but the stars really have to align (some of which is out of their control) to get the right deals signed which unfortunately takes time.

I've said this before, but at these levels DIV appears to be trading as if it had no cash to deploy.

nedstar71 wrote:

babedinkleman wrote:

Lloyd_Blankfein wrote: I'm thinking a royalty in the "aging population" space would be a nice compliment to what they have now. Heath care, retirement homes, indpedent living, that kind of thing. No idea what private companies operate in this area. Pure speculation on my part.

Tonnes of money to be made in this area and I think you're on to something but I don't know of anything in this field that would match the top line royalty franchise model. All the more reason they should be looking at 'diversifying' the business model. Just have to pivot a little and there would be lots of investments that don't quite fit the current game plan with a better return than they're getting currently. Tough to not beat getting negative returns from cash.

I don't disagree with this as the franchise royalty model hasn't been good for many companies as of late. If you're not showing high same store sales growth the market slaughters you. Pizza Pizza is a perfect example. I'd have no problem if they did diversify into other areas like healthcare, reits, or even something similar to Alaris. Look at Decisive Dividend, its doing fine in this market, whereas Diversified is setting new lows almost daily. The CEO is no dummy and can't be happy about this so if they aren't in late stage negotiations with a large partner at this point I'd hope he's evaluating other avenues going forward.