Sir Royalty Income Fund T.SRV.UN

RE:RE:RE:RE:RE:RE:holding strong

[Robsopinion]

Personally I don't think so. I think Prem likes to look at each group of holdings as a seperate entity, insurance, India, retail holdings etc. To write this as simply as possible, Faifax bought Prime restaurants (having to buy out the royalty side), they then merged with Cara/Recipe. They bought out the keg side (ownership, not royalty) because the oppertunity came up and if they didn't someone else would have. They bought out the founding family and took Recipe private. Recipe already had a ton of debt on its books, and as of a couple of years ago, was operated very ineficiently, I cannot speak for present day, but my gut tells me nothing has changed, for the better at least. I think that Faifax wants to see some organic profit, before digging the hole deeper with fresh cash, and that is taking longer than everyone has expected. So sit back and collect your distribution while they bumble around,and eventually someone will be in the position to say "profit or not, this does not make sense to be paying out this royalty. It aslo makes it easier to sell the business as a whole than with the royalty hangover.
Cara changed its name to Recipe, because the CEO at the time felt that it would make it more attractive to American hedge funds, and they were looking for a full buyout at the time. I am certain they would be open to any interest currently as well.