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."

GREY:ALARF - Post by User

Alaris Royalty Corp > Trading below book value

<< Previous

Bullboard Posts

Next >>

Comment by Aspertheoldmanon May 10, 2018 9:49pm

129 Views

Post# 28015834

RE:RE:RE:Trading below book value

The objective of AD buying buying its own unit at a price below book value is not to support the price on the stock market..
It is rather to create value for the remaining unitholder.
Reducing the number of units increase the book value of the units.
Once eliminated, AD do not have to pay distribution to these units anymore.
It is the same as if AD was buying an investment earning 10.4%.
If AD can borrow at 5% to invest in its own unit earning 10.4%, it makes 5.4% profit
Nice !

<< Previous

Bullboard Posts

Next >>

Geologica Resource: Polymetallic upside at a depressed price