Alaris Royalty Corp ALARF

RE:RE:Unsustainable dividend?

[hipfner]

I think that the use of the word "royalty" is misleading, even though it is part of the corporate name. To date they've been earning regular payments on the interest charged on admitedly high rate preferred shares. And, occasionally, the company gets bought, or wants out of the deal, and the shares get paid out - typically at a premium, plus outstanding interest.

Adding deals that result in AD receiving common shares obviously reduces the regular, ongoing income to AD. It behooves AD to begin thinking like any other stock trader and selling some of those shares occasionally. The problem with common shares is that, with private companies, the market for the common shares is not very visible (i.e. not trading on the (e.g.) NYSE) and the sale of those shares is more expensive since buyers have to be found and a price negotiated.

I remain a shareholder.