TSE:FRU

Freehold Royalties Ltd (FRU.TO)

16.82
-0.01 (0.06%)
as of Sep 25, 2026, 8:00:00 pm Market Open.
553 watching
0
BUY
Likes the story longer-term. Very good assets. Have raised the dividend.
PAST TOP PICK
(A Top Pick May 27/08. Down 28.65%.) 9% distribution is safe. One you can hold for many years into the future. Very little leverage.
COMMENT
CN (CNR-T) pension fund is a significant shareholder and may need to re-jig its ownership interest. Taxable investors will be beneficiaries as he expects it will become some form of a dividend paying security after 2011. Will be at a 15%-20% lower rate.
HOLD
(Market Call Minute)
TOP PICK
His 3 Picks are resistance to recession/depression. Thinks we will resume the bull market in oil but not triple digit before 2010 or 2011. This is a royalty company, which gets a percentage no matter what oil or gas prices are giving you downside protection. Have 16% pre-cash flow yield at $50 oil. If oil went back to its old highs, the stock price gain would be 50%.
BUY
Although a smaller trust, it is attractive. He would prefer a couple of others of the more senior producers such as Arc (AET.UN-T) or Crescent Point (CPG.UN-T).
HOLD
(Market Call Minute.) Will probably have to cut their payout. Wait until that happens before Buying.
COMMENT
Not really in the business of operating the oil wells but just earns royalties off of them. Thinks there's a good chance this will be acquired by a non-taxable entity.
BUY
(Market Call Minute.) A cheap stock and people do all their drilling for them. Great opportunity.
DON'T BUY
Risk at collecting royalties.
BUY
Unique in that the majority of their cash flow comes from royalties. An oil/gas company could drill on their land and they get a royalty. Well-managed, conservative company. In 2011 they may be paying taxes in the 15% to 17% range. Distributions should be safe.
BUY ON WEAKNESS
He is picking away at trusts he likes and tries to Buy on weakness. Buying for yield. Thinks oil and gas will stabilize.
TOP PICK
Mostly own royalties from oil production in Western Canada. 10.6% yield. Only affected by the price in commodities, not any costs. Free cash flow currently is $4.75 pre-tax. With taxes, it is $3.20.
HOLD
This trust is a royalty model, which makes it a little more stable than some of the other oil/gas businesses.
BUY
Have a bit of a different model. They don't operate their assets, but get royalty payments from the production. They don't have the cost issues so much. Defensive.
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