Alaris Royalty Corp ALARF

Trading below book value

[Aspertheoldman]

For the first time , AD is trading below its book value.

AD should buy massively its own shares

[BSdetector2016]

Exactly what I have been proposing. It's the only way to stop the slide.

[nedstar71]

What is your logic behind how it would stop the slide? A buyback wouldn't even come close to absorbing the volume, the market wouldn't care that the company feels the shares are undervalued, and they'd be paying interest on money paid for they buyback with no real return, instead of getting more royalty income. Instead of hit and run complaining, by all means elaborate why a share

[TickerTwit]

I listened to King doing a presentation sometime in 2017. He said that the priorities were continued capital deployment and reducing the payout ratio to below 80%; then the dividend can be raised. This was a big factor in my decision to increase my position; if he'd started talking pro-NCIB I'd have sold off (his stated intent, when asked, was there would be no NCIB). If AD can achieve

[Aspertheoldman]

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

[Capharnaum]

They can invest money at 14-15% which is better than 10.4%.

[MrEvilx]

Exactly, the pricing job of market. Alaris's job is to find partners and get returns. The stock price will be awarded as a result. The market is irrational with Alaris and might stay irrational for how ever long, who knows. The buy back I'll not help the price, only news about new deals can. In the meanwhile enjoy the dividends. GLTA

[nedstar71]

"They can invest money at 14-15% which is better than 10.4%" Exactly

[Aspertheoldman]

Yeah but it is taxable, it takes longer to find, and there is the risk of being repaid early

[Capharnaum]

In the last three years, they've "found" an average of $150M per year, which is 3x what you could do with a max share buy back (which is approx 15,000 shares per day when stock market is open). Also, the return when repaid early is much higher than 14-15% as there's a penalty. Lastly, 14-15% is just year 1 return. It accrues with time (average 6% this year) and they also make a

[maypeters]

Let us listen to the investors who want management to support stock price and buy back the shares. Then when we find some deals we like let us issue shares at rock bottom prices and try to raise capital to complete the deals. Interesting.    /sarc

[TickerTwit]

(1) Share price has no fundamental function in the ability of the business to operate profitably. "Dividend yield" is not a performance metric, nor is it a tangible quantification of the health of the business (no matter what you hear on BNN). I cannot emphasize this enough. (2) If Alaris buys shares at 9.5x the dividend (that's about what it would be today), it has replaced a

[westcoast1000]

Thanks to TT and Caph for taking the time to explain to the impatient and price obsessed shareholders out there that buying back shares is not a good idea when you are a company that invests in other companies. We should have better options. This whining about share buybacks is basically a hope that the share price will be goosed a bit, while ignoring that all we have in this business in the