Alaris Royalty Corp (AD.TO)

They got a proposal letter from the CRA with plan to deny some claims for capital losses. It is a great company with an accounting investigation and some bad news with one of its investments. Things get hit emotionally hard. Company says it will not impact the current dividend.

One of their royalty streams just filed for bankruptcy. It may be oversold here. But it has a high multiple.

Is breaking down.

Really well run by a bunch of financial guys. Have a lot of momentum and have invested in a lot of good businesses. Have generated growing free cash flow streams which they pass through as dividends to shareholders. Feels it has a lot further to go. Over 4% dividend yield.

A royalty company that invests in all types of different companies. The uptrend on this is intact and he would not fight the trend. This is in a growth channel so acquire at the bottom of the channel and reduce when it touches the top of the channel.

Looks like a private equity but it allows a small investor, who normally doesn’t have access to private equity, to participate. Fantastic management. Basically loan money to private companies and instead of getting interest or equity, they actually get royalties. Very profitable. Company has been very generous in sharing the cash flow with shareholders. Yield of 4.15%.

(A Top Pick May 2/13. Up 26.24%.) Really well-run company. Still a Buy.

Finances businesses in exchange for a royalty stream. A great investment. They have a good record of great investments across a number of industries. Keep picking away at it.

This has a tremendous business model. Basically, in return for financing they get a call on the revenue streams of the companies they financed. Very flexible model and good for the companies they finance and it is very lucrative. You should see continuous dividend increases as it has had.

An interesting company that provides financing in exchange for a royalty on their revenues. They have a portfolio of cash-flow generating assets. Payout has been steadily growing and no risk in any one business.

They find really good non-resource private companies that are looking for financing and get a royalty stream off the company. A leader in the market and have a great track record of investing in great deals. Had a pull back from its highs of 2 months ago which he thinks is unwarranted. 4.56 % dividend.

Sort of a private equity company that buys up old traditional cash flow generating businesses. Those acquisitions have been very accretive for them. About 4.5% yield.

Will always be more expensive on a valuation basis than others, because they invest in private companies and take a top line revenue royalty stream. Because they are taking it off the top line and not the bottom line, their revenue and earnings visibility is very high. Have diversified quite well and raised their dividend quite nicely. Management is quite conservative. Two caveats. 1.) About 54% of the company is in healthcare, which is a bit more concentration risk then you might want. 2.) Because they invest in private companies, you could get a situation where a company runs into trouble and there may be a little bit of a delay in terms of how you find out about it.

(A Top Pick April 13/12. Up 52.6%.) One of his favourite companies. Loves management. They buy royalties but they cap it so it can’t get too big. Very innovative and very good at finding creative deals. Becoming pricey now at 29X earnings so he considers it a Hold. 4.6% yield.

(A Top Pick April 13/12. Up 22.1%.) Gets a royalty stream from all different sectors except resources. They’ll find a little business and finance them. In return, they get a royalty off the top line. Very safe dividend. 5.2% yield. Not cheap anymore. Buy on dips.