RE:RE:RE:RE:Will this go to $4? I think the time to acquire SRV may have passed. I have held it a long time and increased my position substantially during covid when it was trading in the $2 range. I had mentially wrote it off as a loss as owner and CEO Peter Fowler attempted a take over... or more accurately a take under for $3 and change, which was still below my average.
Thankfully, an activist investor dropped out of the sky to challenge the move and together with covid rules dropped it's gone back to $16. One of my better plays that is netting me over 20% annually plus the captial gains on top... but not without a few grey hairs.
Having said that, Mr. Fowler may look to cash out soon. Just a guess so if DIV wants it, it won't come cheap. I think Recipe Unlimited might swallow it up as they have done with so many other restos.
JayBanks wrote:
flamingogold wrote: Jay, I own both DIV and SRV. I never saw your post previously regarding these 2 names. Were you susggesting they are a better fit merging since Mikes is mostly out west and SRV mostly out east and cater to the same customer more or less?
JayBanks wrote:
ReitsRus wrote: Sold at $3.20 a while back and picked back up on the SPO for $2.80 still holding, debating on if this is going to hit $4 or another possible SPO before hand. Anyone think this could be a good takeout down the road?
How long you looking for a timeline... in the current state on a short to medium term, I doubt $4 can be maintained if achieved, but longer out sure, add anouther holding or 2 sure.
I don't know that I see us taken as a whole, I'd could see us become a taker.
I've mentioned it before but Mr. Mikes seems like it would belong with a SRV more than us, that's one I could see cut lose from us for value.
I had 2 thoughts of possibilities...
Senario 1 would be that Mr Mikes could be monetized and sold over to SRV because they are a restaurant based royalty and likely have better management and abilities to utilize and grow the brand. It's a rather simple concept that I had but I didn't base it on areas served, I didn't get that deep into it, altho I believe SRV has similar type brands to Mr Mikes. In turn DIV could utilize the income elsewhere...
Senario 2 was that DIV takes SRV under as a whole and just put Mr Mikes in that specialized portfolio. At the time I believe our market cap was 5+ times SRVs so it would have been easily consumable, since then SRV has had a good run, I think when I brought it up they were just under or just passed over $10 since then they have run up an extra 50%+ from then (we are only up 15-25%) and this idea has kinda became less plauseable from the surface. I don't remember exactly when I mentioned and discussed it a year or 2 ago...
Both ideas were somewhat out there, but it's based in fact that I don't feel Mr Mikes under us is in the best interests of either party, but I do enjoy thier part to my dividends each month lol
I could see other Royalties moved to other places with more core focuses NND and Oxford are the next 2 I could argue could be rolled up by someone else based in Health Networking and Education based services.
But this is just pure playing with ideas, I like the variety of what we have (not the biggest fan of Air Miles) but I would like to see more come into our hands by more deals or moving something out to fund something newer and bigger...
I'm interested to see where this new venture takes us in terms of distributeable income, we were starting to get up against a fence in terms of how much and fast our payouts could move up, I'm hoping that I see that leash extended. I believe I estimated there was a 'couple' cents possible left, hopefully now it's a 'few' or 'several’.
I'm also interested in moving my bar of where I think overvalue is, before the deal I was thinking of selling at 3.40 or 3.60 (I forget which) if they hit that, I'll have to review where my mind was at when the next quarterly hits and see where I feel I am now... love the holding, but aware there is a price that I likely could do better elsewhere.