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Diversified Royalty Corp T.DIV

Alternate Symbol(s):  BEVFF | T.DIV.DB.A

Diversified Royalty Corp. is a multi-royalty company. The Company is engaged in acquiring royalties from multi-location businesses and franchisors in North America. It owns Mr. Lube + Tires, AIR MILES, Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions and BarBurrito trademarks. Mr. Lube + Tires is the quick lube service business in Canada, with locations across Canada. AIR MILES is a coalition loyalty program. Sutton is a residential real estate brokerage franchisor business in Canada. Mr. Mikes operates casual steakhouse restaurants in western Canadian communities. Nurse Next Door is a home care provider. Oxford Learning Centres is a franchisee supplemental education service. Stratus Building Solutions is a commercial cleaning service franchise company providing comprehensive environmentally friendly janitorial, building cleaning, and office cleaning services in the United States. BarBurrito is a quick-service Mexican restaurant food chain.


TSX:DIV - Post by User

Comment by nedstar71on Feb 14, 2024 11:21pm
190 Views
Post# 35881119

RE:RE:RE:2 steps forward and 1 back with this stock

RE:RE:RE:2 steps forward and 1 back with this stock
BlueJay2020 wrote:

No, I wasn't and I won't be selling. In fact I may add more if we hit $2.60.  The dip may be temporary as you seem to be implying, but it is indicative of the range-bound trading of the stock.  When will it hit $3 again?

It is hard to get ahead when you are raising equity at a 5-6 per cent discount, and a 2 per cent divi increase is not much comfort.


This. 
It always does creep back up and if it did hit $2.60 it would indeed be an ok buy.  But only if you can dump said shares before they pull this again.  And they will.  They always do.  They have no choice. It's never good when you come to the realization that management is ok with a sucky stock price.  And they must be.  Every move they've made in the past 10 years has solidified the sucky share price we have today and made it even less likely to ever see any real upside   And the next move? Another barely accretive royaly transaction funded by a sucky share price, solidifying said sucky share price even moreso.  I remember when some of us were naive enough to believe this stock could see $5 a share.  Now I have a difficult time seening a scenario where this breaks $3.25.  And if it ever did rest assured management will knock it right back down with whatever transaction fits the bill.  Again, they have no choice.  That's the model.
And I don't mean to totally rag on management, they've navgated some rough waters very well, but I'm awestruck at their willingness to be ok with mediocrity.  They boxed themselves in years ago and seemingly weren't motivated enough or shrewd to pivot when they had the chance.  Or just in denial that the model doesn't work.  What's that definition of insanity again ? ;-)
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