KEG Royalties Income Fund T.KEG.UN

Alternate Symbol(s): KRIUF

Consumer Cyclical Restaurants

The Keg Royalties Income Fund (the Fund) is a limited-purpose open-ended trust. The Fund’s objective is to provide consistent monthly distributions to unitholders at the highest sustainable level. The Fund, through its subsidiary The Keg Rights Limited Partnership (the Partnership), purchased The Keg trademarks and other related intellectual property (the Keg Rights) from Keg Restaurants Ltd. (KRL). The business of the Partnership is the ownership of the Keg Rights and, through a License and Royalty Agreement with KRL to exploit the use of the Keg Rights and the collection of the royalty payable under the License and Royalty Agreement equal to 4% of gross sales of Keg restaurants included in a specific pool (the Royalty Pool). KRL’s principal activity is the operation and franchising of Keg steakhouse and bar restaurants in Canada and the United States. The Keg GP Ltd. is the general partner of the partnership and administrator of the Fund.

TSX:KEG.UN - Post by User

KEG Royalties Income Fund > Likely to test $14

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Comment by flamingogoldon Sep 17, 2023 1:04pm

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Post# 35640360

RE:RE:RE:RE:RE:RE:RE:RE:RE:Likely to test $14

Same chart, I just picked the lowest support price because stocks do often retest them. $12+ was seen less than 2 years ago, I don't think it's a big stretch from here to print it again. I would like to re-enter there but I may not get it. Knowing that shark Prem is lurking, I would want to be in around there.

nedstar71 wrote: "On an average basis, I would say the stock is trading where it is now"
We'll go back.10 years.
Pre covid from Sep 2013 - Feb 2020 it didn't trade below $15 at all and looks to have averaged $17, even trading as high as $22. Going back more than 10 years isn't relevant. It spent 4 of those 7 years trading well above $17. Moving past covid in between early 2022 and a month ago it never traded below $15. It's more than a stretch to say it's averaged where it's trading now. Other than covid and lockdown periods it's average is closer to $16 - $16.50 over the past 10 years. This isn't an opinion, it's fact. To suggest that support is $12 leads me to believe you must be looking at another company's chart?

flamingogold wrote: Oct 2011 and Dec 2020 were the 2 extreme lows excluding covid and the financial crash periods. On an average basis, I would say the stock is trading where it is now. So an offer (+ premium) somewhere in between leaning more to the lower end is what I'm thinking. As for $18 or more, the price has traded in that range for only about 24 months in total. If that is the total offer price I would definitely take it.

nedstar71 wrote: What chart are you be looking at that would give you $12 as a support level? Other than the +/- year spanning the covid nonsense it hasn't traded below $14 really at all, and long term support would appear to me to be closer to $15 for 10 years now.
But if you are content on using $12 plus a premium as your number, unless the premium was about 6 bucks above that it would be a none starter anyway imo. Not much chance anyone would even entertain an offer for less than $18, even in the choppy seas the restaurant sector appears to be entering. I'd say if those choppy seas do get really bad the Keg is the one chain that comes out on the other end. If history is any indication the mid range SRV chains and the comparables that Recipe owns get slaughtered first. Who knows. Someone is clearly driving it down and selling it daily so what do I know.