Sir Royalty Income Fund T.SRV.UN

$100M market cap

[BlueJay2020]

We've touched that recently and may do so again soon. Not an especially significant stat but I remember when it was at about $20M when Fowler made his lowball offer - which by the way if accepted would have effectively cancelled the SIR loan he owed that was worth double that ... highway robbery at its best.

Well, I think all parties have done OK in the end - the non-SIR unitholders particularly. And our friend Lembit's made a ton of dough!

[Robsopinion]

I think had Fowler offered $5.00 a unit he may have taken it. And he would still be laughing right now! But he really tried to lowball, and used his press releases to try and depress the stock and the sentiment of investors. That to me borders on criminal. I was the only one to speak up at the AGM and one of my questions was " how badly does he think his actions have created animosity between

[flamingogold]

You can include me in that small crowd of "unforgiven". I want to echo what was said about the "paper gain" that the non-SRV holders have made. It is only a paper gain, so to crystalize those gains the share price needs to stay healthy which is good news for the street shareholder. Of course, there is a negative to having just a few holding major control but imo that period has

[Robsopinion]

I'm a little confused about whom you are referring to with the "non SRV" shareholders, do you mean SIR the parent company? And how would they cristalize their gains?  The other elephant in the room, is that as the economy improves Fowler is likely going to need more money to refresh existing stores and build new ones to replace what has been lost. To do that SRV will likely go

[flamingogold]

ya I wrote that incorrectly, I meant the biggest shareholders of SRV including Mr. Janes and Mr. Irvine will need a healthy shareprice and volume if they ever decide to exit to cyrstalize their paper gain.

[flamingogold]

... and an incentive for a healthy shareprice bodes well for us little fish!

[BlueJay2020]

I suspect Lembit very much has a private equity mindset where illiquidity of investments is pretty much a given.  Mind you, this is on the illiquid end of illiquid  investments - he doesn't even hod a stake in the underlying company!

[Robsopinion]

I think this is an amazing post, and should be revisited. It was certainly an angle I wasn't focused on at the time. I did not verify the numbers but am more than confident that BJ did.  Fowler tried to take the company private, in the midst of the chaos of Covid, while talking doom and gloom about the company, when the share price was at its all time low. And he (effectively being SIR)

[BlueJay2020]

We're going to see a big positive number in the bottom line by the end of the year, and it will be the reversal of much of the fair value hit the SIR loan took this year. It's all non-cash, of course, and one of the crazy rules of IFRS that can cause large fluctuations in balance sheet values.  Still, black ink looks a lot better than red.   By the way, the fair value of

[flamingogold]

I remember my wife telling me about Renegade when she saw it advertised in the SIR app back early in the year during the midst of the covid storm. Then came the below-the-belt takeunder bid. We know the rest. Sometimes real character is revealed during the worst of times.

[BlueJay2020]

I don't know about anyone else but I have also learnt a decade's worth of investing lessons in the last 18 months!

[Robsopinion]

Yes sir! From the sounds of it you avoided all of the mistakes and made all the right moves during a major market correction.  lots of people panicked and sold at the bottom wiping out possibly decades of savings out of fear of everything going to zero. The reality is if everything went to zero we, and the rest of the world would be so fuked that having some cash in the bank would be

[BlueJay2020]

Hand on heart, I wouldn't change what I did in March/April and since then, in complete contrast to the 5 years previous to COVID!   I was 14 hours a day every day doing research and trading and it was incredibly stressful for a while. It's very easy to second guess yourself and forget what you had to deal with at the time.  For example, I could have bought a ton of CNQ when

[Robsopinion]

Last year I scooped up a bunch of CNQ @ $12.86. Right about the time oil went negative. It's giving me something like 15% yield and in today's Globe, in the analysts upgrades and downgrades there is a call for $70!  many, many good buys out there last year if you were willing to be a little contrarian.