RE:RE:RE:Sold out at 2.91
nedstar71 wrote: While I disagree with this being junk, that is an interesting observation. Executive compensation is tied to new royalies being inked as opposed to stock performance. I wonder if the company's path may have been different if compensation was tied to the latter. Sean owns many shares and options so he benefits greatly from and increased stock price too. But difficult to argue with the sentiment that more royalty streams haven't resulted in a better share price and the company should have made this connection and pivoted years ago.
If your looking long term you would rather pay the compensation up front rather than draw it out and base it on stock performance in this case.
I'd rather pay what ever % of the deal up front, rather than drawing out over several years. It's cheaper for the shareholders. And as a share holder himself his stock preformance based bonus is his personal gains from share price and dividend payouts already, why multiply that.
It encourages to seek and get deals completed and hopefully less drawing it out so he can look for the next deal. If your going to base it on preformance than it encourages him just to do a better sell job on what little they do and what they already have.
If this was a different type of company (non-Royalty) then I strongly feel a bonus should be based on stock preformance.
Also like Tommy, I don't mind it this thing stays low and relatively unknown, it allows me the opportunity to add more shares at good prices. I currently feel there's more movement to be had on the payout side before I'd worry about the stock price. Once we get maxed out on distribution of free cash, then let's move upward on share price.
That said, watching it bounce I also thought about trimming 25-50% of my holding above 90 and putting lower bids in at 80 and 70 for a reduction in cost basis 3.5-7%. As great as a plan as it sounds to trade a bit, my luck is the day after I get out they announce a new deal or increase the payout and we shoot into the 3.20s lol. Thus, I'm just sitting on my hands as best I can and not do something stupid to myself as that risk doesn't seem worth the reward.
I watch anouther Royalty play that I'm yet to buy into, 'SVR' or SIR Royalty Income Royalty Trust which is trading around 25% below pre-Covid value with a similar area payout sceme. They concentrate on restaurant chains and are about 1/3 the value we are... It would be interesting to buy them out or put them under our umbrella, and toss Mr. Mikes into thier portfolio as I'm sure they have more experience and capabilities than us with semi-diversified restaurant holdings (so it's not quite like a KEG, PZA or BPF) and move forward together, larger. Only reason I'm not in them yet is I figured this lockdown would push them into the sub 11s maybe on a long shot the 9s, but to this point they are doing stronger as they paid out a year end special and seem intent at this point on holding the dividend going forward rather than suspending again. Should things get righted in the world, they also have some payout upside in the can (10-15%) to get back to where they were or should be.