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Diversified Royalty Corp T.DIV

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

Diversified Royalty Corp. is a multi-royalty company. The Company is engaged in acquiring royalties from multi-location businesses and franchisors in North America. It owns Mr. Lube + Tires, AIR MILES, Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions and BarBurrito trademarks. Mr. Lube + Tires is the quick lube service business in Canada, with locations across Canada. AIR MILES is a coalition loyalty program. Sutton is a residential real estate brokerage franchisor business in Canada. Mr. Mikes operates casual steakhouse restaurants in western Canadian communities. Nurse Next Door is a home care provider. Oxford Learning Centres is a franchisee supplemental education service. Stratus Building Solutions is a commercial cleaning service franchise company providing comprehensive environmentally friendly janitorial, building cleaning, and office cleaning services in the United States. BarBurrito is a quick-service Mexican restaurant food chain.


TSX:DIV - Post by User

Bullboard Posts
Comment by momyoon Oct 05, 2016 7:45pm
189 Views
Post# 25314587

RE:RE:RE:RE:RE:RE:RE:RE:Proposed Buyback

RE:RE:RE:RE:RE:RE:RE:RE:Proposed BuybackI'm confused. The wording "approve the reduction of the stated capital of the Corporations common shares to $200.0 million" is an odd way to tell people you want to do a big buy back. And why do they want to do this? To cancel enough shares so they can afford to pay the current dividend? They said they intend to find new royalties to replace Franworks but if they spend their cash on buybacks it will hinder their ability to purchase good, new royalties. Are they dropping the plan to buy more royalties? If they want to do a buyback, why not use the word buyback instead of leaving us guessing about what they mean? Note they could seek approval to start buying back small amounts of shares on a regular schedule with the long tern goal of hitting a $200M market cap. But why have a market cap goal? Why not have a shares outstanding goal? Market cap is a moving target. Indeed, the more shares they buy the better the company will look and the sp will go up pushing up the market cap. They may never be able to get to their goal. They'll be digging holes with one hand and filling them in with the other. Anybody else have thoughts? Ideas on the answers to these questions?
Bullboard Posts