Diversified Royalty Corp T.DIV

Air Miles

[pierrelebel]

Air Miles is an important "partner".

However, recently i find Air Miles to be a "pain in the rear end" to deal with.  Constant online "technical issues" that prevent the cardmember from completing a booking, and forget the phone as they have hundred of callers ahead of you.

Maybe it is time for DIV to drop Air Mailes.

Anyone else having recent experiences booking through AirMiles?

[Tommy123]

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[nedstar71]

I'm more concerned about Air Miles parent company going bankrupt, which is apparently may be grounds for terminating the licence completely according to the news release announcing the acquistion in 2017.  Loyalty Ventures, the operator of Air Miles is now trading at a market cap of just $30 million, down from $700 million at the beginning of the year.  When a company is trading down

[babedinkleman]

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[Tommy123]

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[nedstar71]

I see the press release for a new president of the Air Miles division announced April 11th if that's what you are referring to.  I like your positive outlook, but Loyalty Ventures share price is off over 90% since he was appointed.  Stocks on the Nasdaq don't trade at $30 million market caps, not for long anyway.  I'm weighing whether this is priced in to DIV or not, and

[Tommy123]

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[flamingogold]

The FED is not going to cut rates, no chance. At best, they pause. But, I believe the market is overly hopeful on even that given that only 40 days ago Powell warned on the expectation of pain to come. Food for thought... would DIV consider buying HOT.UN? The latter is trading below it's real value, is a US play with potential to grow with capital infusion. The current distribution is 8

[Tommy123]

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[babedinkleman]

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[babedinkleman]

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[flamingogold]

Thanks for chiming in. I am relatively new to DIV, good diversification but in need of a portfolio shuffle soon. Also, not a big follower of women's fashions, although my daughter has pointed me towards ATZ which she claims is like a cult among young women... sort of like LULU and they are slowly expanding into the US. I have been flipping it this year on small gains and trying to get back in

[babedinkleman]

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[nedstar71]

I bought some Reitman's just at a couple of weeks ago.  Trading at potentially less than 1x earnings is unheard of.

[flamingogold]

All brick and mortar retailers today are facing negative headwind of declining mall business. Just guessing here, Reitmans, from what I can recall, is a mid-lower end brand and could be in malls with declining traffic. ATZ, on the other hand, is a premim brand and in class A malls and fashion locations. Also, their online business is doing extremely well as a younger audience is more

[babedinkleman]

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[nedstar71]

Yes! Plus more than half of Aritiza's revenue is generated in the US. Reitman's generates more revenue in Canada than Aritzia does, and looks to be much more profitable in doing so. It's a potential 5 bagger imo.

[babedinkleman]

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[Capharnaum]

Whenever the economy turns sour, high rates won't be sustainable and will crash back towards zero. Powell is a fool and I think the FED overstates their real capacity of impacting inflation. I believe that their quantitative easing (through the purchase of bonds) has a more potent effect on the money supply than straight up rates.

[babedinkleman]

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[flamingogold]

Borrowed money is still dirt cheap by historical comparison. My first mortage was a "builder's special" at 12.75%. 10 years later I sold and didn't make a dime on the house. When rates crashed to near 0 during covid driving real estate to record highs, it was time to sell the rental which closed late Spring. Now sitting on a cash pile and easing in on the pullback. But, real

[babedinkleman]

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[flamingogold]

Powell was late to move and fell behind the inflation curve. I made posts early in the year when they held rates at 0 that it was a mistake. Of course, markets rallied and real estate catapulted even higher... the easy money party lived on for a few months longer.   But, too late... the damage was done. Here we are now 6 months later and the S&P falling 25% and only now is Powell

[Capharnaum]

Fed rates should be aligned with long term growth rates. That's the only way to keep the money supply in line with the production and keep prices fairly balanced. As countries get more developed, their productivity tends to slow down, hence it's normal for rates to decline as well. Now, should they be at zero? Probably not. Will they be there? Surely, because when the economy isn't

[Tommy123]

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[flamingogold]

You couldn't be more wrong. Free money is over. You likely have only lived in this era of cheap money so can't believe what you haven't experienced. People can only afford to pay so much for a roof over their head. Lower rates or higher wages are the main two factors supporting higher real estate prices. The FED has been cyrstal clear pain is coming for the debtors and he is on a

[Tommy123]

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[babedinkleman]

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[babedinkleman]

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[Capharnaum]

With the way the economy is built, it can't sustain long term higher rates. That's why long term neutral rates have a target of 2%. This also explains why 10 year bonds don't move up to the tune of the short term rate set by the FED.

[Tommy123]

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[babedinkleman]

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[Tommy123]

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[Tommy123]

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[Tommy123]

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[nedstar71]

Loyalty One just went below a dollar a share. I hope you're right, but I don't see the market not caring if DIV loses 15% of their revenue. I doubt most investors even know the shape LYLT is in and that the investment is at risk as very few read this message board.

[Tommy123]

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[Tommy123]

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[nedstar71]

Yes each royalty agreement is set up as its own limited partnership as I understand it. A failure of one would not affect the others.

[Tommy123]

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[nedstar71]

Nice of them to spin out about $750 million in debt along with Air Miles eh? Market cap now 22 million. Loyalty Ventures never had a chance even if Air Miles hadn't lost Sobey's imo. How are transactions like that even legal? I'd prefer they just go bankrupt now rather than draw it out. DIV doesn't need any overhanging bad news that gives people any more excuse to dump.

[babedinkleman]

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[nedstar71]

"only Air Miles" is their second highest revenue royalty fyi

[Tommy123]

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[Tommy123]

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[nedstar71]

Too risky imo. Over half a billion in debt. Interest rates expected to keep climbing. Shrinking revenues. Class action lawsuits. Nasdaq deficient? Market says it's going to zero, but there could always be dead cat bounces if you're feeling lucky! Good luck!

[Tommy123]

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