Diversified Royalty Corp T.DIV

Revenue stream

[sirmevl]

All,

Below is a question not a statement:
I keep reading about how the stocks going to increase when they acquire an new revenue stream but would this not mean more debt for the company ? Would this not drive down the cost at this point and would it not be a better idea to just hold out until covid number subsides and people start to function as per normal and let the revenue increase ?  I would assume if they purchased another revenue stream right now they would either take on more debt or need to issue more share but I'm no analysist.  Could some clarify this thoughts on this subject with finicial numbers and explanation .

thanks. Merv

[Martincat]

It is a good time to make acquisitions when things are slow and money is cheap....When the economy recovers post pandemic, DIV will be well positioned to profit from all aspects....JMHO!

[Tommy123]

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[Shirtlessnomore]

Indeed this can be a catch 22, however purchasing something that is to some degree unaffected by all this that's undervalued to the point of just a "casualty of war" type of thing that can still pay a royalty throughout this, money is cheap right now and I think a win win situation could take place, they are smart folks so I wouldnt be surprised. A perfect fit would be some type of

[BlueJay2020]

The worry I have about diversifying is that investors seem to like pure plays these days - which doesn't make a lot of sense to me personally, but...look at how poorly Diversified REITS are doing.  Perhaps it's due to momentum investing, I don't know.    Personally, as long as it was accretive, and as long as management are able to give enough focus to each piece, I'

[Shirtlessnomore]

That is very true, everything that is way undervalued right now is diversified, maybe investors feel too many opportunities for a failure currently. I like them personally and in normal conditions they seem to work out well, I have this, mosaic (m) and bought a few decisive dividend back (de) all for dirt cheap and way undervalued. All are doing ok financially but of the 3 this one is the only one

[Capharnaum]

It lets value investors get better investments for cheaper. By buying at a lower price, you'll either get a better dividend or more money reinvested in the business. Multiples will tighten at some point.