Alaris Royalty Corp ALARF

Industrials Conglomerates

"Alaris Royalty Corp is engaged in investing in operating entities. Its operations consist primarily of investments in private operating entities, typically in the form of preferred limited partnership interests, preferred interest in limited liability corporations in the United States, loans receivable, or long-term license and royalty arrangements."

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Alaris Royalty Corp > Trading below book value

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Comment by TickerTwiton May 10, 2018 8:02pm

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Post# 28015442

RE:RE:RE:Trading below book value

I listened to King doing a presentation sometime in 2017. He said that the priorities were continued capital deployment and reducing the payout ratio to below 80%; then the dividend can be raised. This was a big factor in my decision to increase my position; if he'd started talking pro-NCIB I'd have sold off (his stated intent, when asked, was there would be no NCIB).

If AD can achieve $100M+ net deployment (new buy-ins less book value of redemptions) in 2018, with no loss of revenue to partner failures, then I think there's a strong chance of a healthy dividend increase in early 2019 (7%+).
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nedstar71 wrote:

BSdetector2016 wrote:

Aspertheoldman wrote: For the first time , AD is trading below its book value.

AD should buy massively its own shares

Exactly what I have been proposing. It's the only way to stop the slide.

What is your logic behind how it would stop the slide? A buyback wouldn't even come close to absorbing the volume, the market wouldn't care that the company feels the shares are undervalued, and they'd be paying interest on money paid for they buyback with no real return, instead of getting more royalty income. Instead of hit and run complaining, by all means elaborate why a share buyback makes sense considering my points are pretty much undisputable.