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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

Bullboard Posts
Comment by SurfForWealthon Apr 23, 2003 10:06am
169 Views
Post# 6038784

RE: 5 yr outlook

RE: 5 yr outlookBabedinkleman, I think you need to keep things in perspective. I have been one of the biggest supporters of this stock & it is by far my largest holding. I also still think it has big upside from here over time...the chart is bullish IMO. However let's keep things realistic. Correct me if I'm wrong but I believe NB will have the same capability as the existing Quebec plant, 100K tons annually. Full realistic throughput allowing for disruptions is about 90K tons annually. A near flawless year at 90K tons could produce about $1.30 in EPS which we hope for this year. To meet your "conservative" target they would have to have NB running at full capacity by Jan 1, 2004 & keep it that way all year. That seems rather optimistic to me. The current estimates are for about $1.20 & $1.75. That seems more realistic to me & still easily justifies a higher share price from my perspective. As for dividends I think they should delay this idea & use their cashflow to pay for 2 additional facilities. Dividends in about 2 years might make more sense. What I do not want is dilution. I love the idea that this company can internally finance their amazing growth profile. In some ways it is almost a perfect stock. Cheers!!!
Bullboard Posts