Sir Royalty Income Fund T.SRV.UN

In what world…

[BlueJay2020]

...does the SP go DOWN after that announcement? I have picked up another 1000.

[babedinkleman]

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[pjn0987654321]

That is worrying.  Also, they said several times they don't expect the dividend to be put back to pre covid levels, which sounds to me like their way of saying another dividend cut was coming.  However, when the restrictions lift, the business could do exceptionally well because of pent up demand.  

[babedinkleman]

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[Robsopinion]

The problem is all of those "better" restaurant chains are franchised based. There are a lot of individual franchises on the brink right now, and very few buyers looking to take the plunge. 

[BlueJay2020]

It's very understandable that you are annoyed at yourself for missing out in a big way.  I did the same as you, but I had the good sense and humility to admit I made a mistake and bought back in - I am so glad I did.  I can well understand your comments in that context, although I completely disagree. Let's deal with the "pre-Covid levels" first.  Of course, if

[Robsopinion]

BJ,  you did have the good sense and humility to buy back in, yet to be honest, I still fell what you did was in very poor taste. You were on this board pumping everyone to hold and as soon as the markets closed on the last day of Janes you announced that you tendered. It gave the sense that you wanted to try and ensure your order was filled completely.  I do have a lot of respect for

[BlueJay2020]

i hear you, but I can assure you there was no ill-intent behind the action. If there had have been I would not have disclosed the tender! To be perfectly honest, as possibly with many of us, this is my first real experience of 'crisis investing' - I lost 40 per cent of my portfolio in 3 weeks in early 2020 , the basis of my primary income. From then its been a mad scramble to claw

[flamingogold]

I totally get where you are coming from. I have traded stocks where I sold too early only to buy back in higher. There is actually a term for this, it's called "whipsawed". What's key is staying green. Nothing worse than chasing a stock and then have it do a one-eighty. Last year for longs was brutal. Nothing harder than buying into a storm and seeing your position go blood

[Robsopinion]

I'm honestly shocked that this was your first time crisis investing, you seem like a very seasoned investor.  becareful with your risk profile would be my only advice. I'm not sure what you are working with, but  on a million dollar portfolio and the units you say you hold this would be about a 12% weighting. In the past, I would have said Sir was a nice, steady, relatively

[BlueJay2020]

Well, I'll take that as a compliment!  I only started self-investing in 2016, so I didn't get hands-on in 2008/9.  I guess being a retired CA helps - I can find my way round IFRS statements no problem and seen a lot of businesses in my time. You're right to caution about the risk profile.  Other than SRV, I've been pretty cautious up to now, as I've indicated

[flamingogold]

BJ, since you mentioned it, the split share scene are an active trade of mine. High risk, high reward, not for everyone for sure. DGS has been my biggest winner of all. Owned it coming out of the financial crises when rates crashed and held it up until 2019 as fiscal policy tightened. Have to admit, my timing was really good on it. Rebought during the storm last year and now collect a 33% tax

[BlueJay2020]

Yeah, I find them a really intriguing play but not for the faint of heart - with yields that high there has to be a catch somewhere!  One thing I find confusing is the potentially different tax treatment of distributions - dividends vs cap gains or ROC.  Is there anywhere that provides a good summary? I currently only have about $25k split across DFN and FTN.  I think they can be

[flamingogold]

I try to hold these splits in my TFSA to avoid the tax treatment on ROC. DFN though is one that has no ROC. I don't hold any FTN right now but according to the one of the regulars there called mouserman it is a good hold. The high distribution rate is achieved by leverage, no surprise really. But, it is something that I do not wish to take on directly. Here is a primer on which split might be

[babedinkleman]

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[Robsopinion]

Except that BP is almost all franchise (and lots of them are struggling greatly) The Keg (also a large position for me) is corporate and franchise, but really is majority owned by Recipe (formerly Cara)  both are vastly different models than Sir. 

[BlueJay2020]

:) to be fair I was just taking a cheap shot! Mind you, I note that you have not even attempted to counter my analysis. What makes Keg or Boston Pizza so 'superior' to SRV from an income investors point of view? As I have shown, SRV has the best (most stable) performance over the last 5 years and is trading much further below historical averages. I just don't get your antagonism - did

[babedinkleman]

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[Robsopinion]

Jacks was having its lunch eaten by Chucks roadhouse. They would drop stores as close to them as possible for the cheapest price (rent and building cost) but every concept has its own challenges and flaws.  the keg, while I hold a position in them as well (in the $50k range) Recipe, basically owns them. My investment in the keg was simply a collect the dividends until the buyout offer comes

[flamingogold]

I own the Keg too, not a huge position about $30k. While the quality has dropped, it's been marginal and the brand is tops in its space. Canyon could not compete and since covid many smaller steakhouses have gone under. Keg will do well post covid. I hope to see $20 in the next 6mths - 1 year with some dividend raises on top. This Dec/Xmas holiday traffic is going to be epic across the

[Robsopinion]

Hate to burst bubbles but the holiday season doesn't end up being epic. Instead of turning tables of 2 and 4 over 3 times, large holiday parties take up the tables and they don't turn. Also companies limit alcoholic consumption. Large holiday parties hurt sales in restaurants compared to a busy weekend night. 

[flamingogold]

True, but it might not be companies taking up the tables but individuals out celebrating with friends and family to make up for a lost year and more.

[Longholder99]

When the vaccinations have begun to take effect and the country opens up. Ontario specifically. How many people who have been eating takeout in their living room watching Netflix for the past year or in their car from a drive thru will want to continue to eat out of styrofoam? Restaurants will be packed. Beer will flow. Games will be watched at restaurants with sports bars or in pubs. Just look at

[flamingogold]

Longholder, exactly my sentiment. There was a guy about a year ago who came on this board and talked this stock down. I was looking out past covid because pandemics always end. He called me flamingogoof... I wish he would show his face again cause who's the goof for not holding when this was trading for dirt. I took a lot of heat last year for buying equities that got hit hard by covid. This