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Bullboard - Stock Discussion Forum Diversified Royalty Corp T.DIV

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

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... see more

TSX:DIV - Post Discussion

Diversified Royalty Corp > No New Shares
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Post by logisticsguy on Feb 16, 2024 12:48am

No New Shares

This came out of the treasury so there was no new dilution
Comment by pierrelebel on Feb 16, 2024 10:52am
logisticsguy wrote "This came out of the treasury so there was no new dilution" ???? Please explain. Everyone else knows differently. Shares issued by treasury mean more shares issued therefore diluting earnings. PS - There is no dilution when previously issued shares are sold by a controling shareholder,
Comment by BarstoolSage on Feb 16, 2024 12:14pm
Dilution in earnings ...possible....but shares out equals cash in. So no dilution in value except for the share issue price being less that trading values. And as long as the new cash in is put to work earning money, by debt reduction or smart investing, there is PERHAPS accretive value.....hindsight will tell
Comment by Fishingbuddy on Feb 16, 2024 1:02pm
I was wondering this myself so I did some digging online. (It's online so it has to be right lol)  Copied from the corporatefinaceinstitute.com website.  "Treasury stock, or reacquired stock, is the previously issued, outstanding shares of stock which a company repurchased or bought back from shareholders. The reacquired shares are then held by the company for its own ...more  
Comment by JayBanks on Feb 16, 2024 1:45pm
I looked at investopedia couple timbits, but this is still above my pay grade of full understanding. The last raise they did for the Stratus deal also came from the 'Treasury' and the recorded shares outstanding number jumped 16.7 million, 16.4 million of which came from the bought deal issuance the others seem like they are regular increases likely from the DRIP... It also seems ...more  
Comment by prophetoffactz on Feb 16, 2024 2:34pm
"It also seems like these shares do dilute the EPS..." They will buy another royalty stream with the money.
Comment by nedstar71 on Feb 16, 2024 3:27pm
They are payng off debt with the money
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