GREY:ALARF - Post by User
Post by
mmodanoon Oct 13, 2016 12:49pm
348 Views
Post# 25339856
Keep calm and read the financial statements.
Keep calm and read the financial statements.
It's part of their business to see some royalties go and sign new ones. They don't 'lose' or 'win' when they add or remove a royalty they 'lose' or 'win' when the payout ratio is over 100% or if a major portion of their investment stop making payments. If you read the financial statements, the payout ratio (overall) is below 100%. It is above 100% in Q2 because of a major tax payment to the CRA and some royalty payments that will be recorded in Q3. Yes, the KMH situation has to be solved but I'd rather wait another 6 months rather than see AD lose money.
I strongly suggest that all the anxious posters take the time to read the Q2 statement (and ideally the previous ones too) from A to Z and not to rely on opinions or people that can't stand volatility and start creating unrealistic scenarios in their mind from their own feelings and fears. Of course, investing in the stock market isn't for everyone and GICs are a good alternative for people that are invested in AD and don't sleep at night. And if you don't sleep at night but also don't like GICs, just invest in the CMR ETF and forget AD forever. You can be 100% sure you'll get your 0.30% dividend every year without worrying about a royalty stream that doesn't pay as planned.
I am sure that AD will be fine (stock price wise) in a few months. When I read previous posts here I wonder why some people don't let competent people manage their assets on their behalf. Take a deep breath, go read the financial documents on AD's website from the first sentence to the last one, and watch people sell their stocks in panick until the Q3 results are out. Then welecome them back respectfully on this board. Never mention that you bought their shares at 20.75$ in October, that would be mean.
MM