Grenville Strategic Royalty

GRC-X

Analysis and Opinions about GRC-X

Signal
Opinion
Expert
COMMENT
COMMENT
April 26, 2016

A lender to companies that generally can’t get bank financing, a kind of a venture capital fund, but instead of taking debt or equity, they take a royalty on sales. He likes that sales are much more stable and much less volatile than profits. Also, likes management who are experienced venture capitalists. Has a decent yield and is looking for some decent results when they report tomorrow.

Show full opinionHide full opinion

A lender to companies that generally can’t get bank financing, a kind of a venture capital fund, but instead of taking debt or equity, they take a royalty on sales. He likes that sales are much more stable and much less volatile than profits. Also, likes management who are experienced venture capitalists. Has a decent yield and is looking for some decent results when they report tomorrow.

COMMENT
COMMENT
March 9, 2016

He likes the business model and he has done well on royalty names. This one is a little more aggressive, they take a little more risk. That is fine as long as you understand what you’re getting into. Have had some very, very big successes in their investments. Analysts still seem warm on the story.

Show full opinionHide full opinion

He likes the business model and he has done well on royalty names. This one is a little more aggressive, they take a little more risk. That is fine as long as you understand what you’re getting into. Have had some very, very big successes in their investments. Analysts still seem warm on the story.

SELL
SELL
February 23, 2016

This is a rollup, where they give capital to someone who wants to get out of a business, or to get cash in her pocket, and they take a royalty stream off that business. Interesting concept but not one he has participated in. Highly levered to the economy. Very nice dividend yield of 9.9%. A problem is if one of those little companies decides they’re going to go out of business, or something goes wrong, it can have an impact on your revenue and sales. He is not thrilled by this kind of business.

Show full opinionHide full opinion

This is a rollup, where they give capital to someone who wants to get out of a business, or to get cash in her pocket, and they take a royalty stream off that business. Interesting concept but not one he has participated in. Highly levered to the economy. Very nice dividend yield of 9.9%. A problem is if one of those little companies decides they’re going to go out of business, or something goes wrong, it can have an impact on your revenue and sales. He is not thrilled by this kind of business.

COMMENT
COMMENT
December 9, 2015

Doesn’t own the stock, but owns the convertible debenture. He likes the company. It has an interesting business plan as far as funding some of their companies. With them being a smaller size, and not having too many royalties out so far, we have seen lumpy results. There have been some great numbers when they have sold a few businesses, and there have been some businesses that have failed. With a smaller size, that is going to have an impact on the company. Just announced today acquisitions of 3 royalty deals of just over $9 million, which broadens their base and builds out their business. Because management owns a fair bit of stock, it makes him pretty comfortable that the dividend is going to be safe. However, trailing numbers indicate that it is over 100% of their cash flow, so they do need to grow into that dividend.

Show full opinionHide full opinion

Doesn’t own the stock, but owns the convertible debenture. He likes the company. It has an interesting business plan as far as funding some of their companies. With them being a smaller size, and not having too many royalties out so far, we have seen lumpy results. There have been some great numbers when they have sold a few businesses, and there have been some businesses that have failed. With a smaller size, that is going to have an impact on the company. Just announced today acquisitions of 3 royalty deals of just over $9 million, which broadens their base and builds out their business. Because management owns a fair bit of stock, it makes him pretty comfortable that the dividend is going to be safe. However, trailing numbers indicate that it is over 100% of their cash flow, so they do need to grow into that dividend.

COMMENT
COMMENT
November 24, 2015

Just came out with some very good results, and also bumped up their dividend 40%. This company takes a royalty position in companies that can’t get bank or other forms of financing. An interesting business because it is kind of a play on venture capital, but in a different way then you would in a venture capital fund. They have about 33 names in the portfolio. He still likes this. Dividend yield of 9.4%.

Show full opinionHide full opinion

Just came out with some very good results, and also bumped up their dividend 40%. This company takes a royalty position in companies that can’t get bank or other forms of financing. An interesting business because it is kind of a play on venture capital, but in a different way then you would in a venture capital fund. They have about 33 names in the portfolio. He still likes this. Dividend yield of 9.4%.

HOLD
HOLD
November 20, 2015

(Market Call Minute.) The stock has had a pretty good run and you are collecting a really juicy dividend yield.

Show full opinionHide full opinion

(Market Call Minute.) The stock has had a pretty good run and you are collecting a really juicy dividend yield.

HOLD
HOLD
November 18, 2015

It probably does not look sustainable, but the dividend is. These guys are well experienced operators and large owners. They probably have not done something that has gotten ahead of itself in raising the dividend. Another couple of quarters will probably tell is what is going on. He has the convertible debenture.

Show full opinionHide full opinion

It probably does not look sustainable, but the dividend is. These guys are well experienced operators and large owners. They probably have not done something that has gotten ahead of itself in raising the dividend. Another couple of quarters will probably tell is what is going on. He has the convertible debenture.

COMMENT
COMMENT
October 22, 2015

He likes this. Still a top name in his small-cap fund. Kind of a crappy market right now for small caps. Because a name is falling, doesn’t mean the underlying fundamentals are changed. This was not overvalued, and now there is a significant multiple compression. Their business model is such that he could foresee a dividend increase in early 2016. A royalty provider to smaller companies and the business model took a few hits when there was an accounting fraud with an accounting firm and they had to write down that asset at $2.5 million. Thinks they are only losing about $200,000. The business model is built to sustain losses on individual holdings. At the same time they got bought out of 3 different investments, where their annualized return was 150%ish, versus a typical 25% rate of return. The only risk for future growth, unless they crystallize existing royalty agreements, is being subject to coming back to the market to raise money to redeploy on a highly accretive basis. Dividend yield of 8.6%.

Show full opinionHide full opinion

He likes this. Still a top name in his small-cap fund. Kind of a crappy market right now for small caps. Because a name is falling, doesn’t mean the underlying fundamentals are changed. This was not overvalued, and now there is a significant multiple compression. Their business model is such that he could foresee a dividend increase in early 2016. A royalty provider to smaller companies and the business model took a few hits when there was an accounting fraud with an accounting firm and they had to write down that asset at $2.5 million. Thinks they are only losing about $200,000. The business model is built to sustain losses on individual holdings. At the same time they got bought out of 3 different investments, where their annualized return was 150%ish, versus a typical 25% rate of return. The only risk for future growth, unless they crystallize existing royalty agreements, is being subject to coming back to the market to raise money to redeploy on a highly accretive basis. Dividend yield of 8.6%.

COMMENT
COMMENT
October 21, 2015

He doesn’t own the stock, but owns the convertible debentures. Their business model is interesting. They’ve had a couple of hiccups in that they’ve had companies that haven’t done very well, but they have also had a couple of companies that have been taken out. Dividend yield of 8.3%.

Show full opinionHide full opinion

He doesn’t own the stock, but owns the convertible debentures. Their business model is interesting. They’ve had a couple of hiccups in that they’ve had companies that haven’t done very well, but they have also had a couple of companies that have been taken out. Dividend yield of 8.3%.

TOP PICK
TOP PICK
September 15, 2015

A royalty trust, which essentially takes stakes in companies. Currently has 25. In exchange for that they take a royalty on the sales of the business. He likes that royalties are based on revenues rather than earnings. The royalty profile is a lot more stable than the typical private equity fund or venture capital fund. It also gives him exposure to a broad number of names. He wants this to eventually have 50-75 names, so the specific risk in any one company is relatively small. Non-resources, so no extraction, no oil and gas, etc. Very cheap at these levels. Dividend yield of 8.46%.

Show full opinionHide full opinion

A royalty trust, which essentially takes stakes in companies. Currently has 25. In exchange for that they take a royalty on the sales of the business. He likes that royalties are based on revenues rather than earnings. The royalty profile is a lot more stable than the typical private equity fund or venture capital fund. It also gives him exposure to a broad number of names. He wants this to eventually have 50-75 names, so the specific risk in any one company is relatively small. Non-resources, so no extraction, no oil and gas, etc. Very cheap at these levels. Dividend yield of 8.46%.

BUY
BUY
August 25, 2015

Came out with their quarter last week where they announced that operations were fine. They do royalty agreements with companies that would not necessarily qualify for prime credit with the banks. It is normal for this business model to occasionally take a bad debt expense, and write the investment down to zero and then hopefully recover some of it. They did that on a $1 million loan which represented 2.5% of their loan book, and the market cap fell by $20 million. That was an overreaction. Just announced that one of their larger deals was acquired by Hitachi, so it is highly likely that they are going to get bought out. That means they will have more money to deploy. Thinks this sets them up for a dividend increase in 2016. A few more quarters will prove the viability of their business model. A dividend increase would help that along as well. Yielding about 8% and trading at about 16X so it is a good valuation.

Show full opinionHide full opinion

Came out with their quarter last week where they announced that operations were fine. They do royalty agreements with companies that would not necessarily qualify for prime credit with the banks. It is normal for this business model to occasionally take a bad debt expense, and write the investment down to zero and then hopefully recover some of it. They did that on a $1 million loan which represented 2.5% of their loan book, and the market cap fell by $20 million. That was an overreaction. Just announced that one of their larger deals was acquired by Hitachi, so it is highly likely that they are going to get bought out. That means they will have more money to deploy. Thinks this sets them up for a dividend increase in 2016. A few more quarters will prove the viability of their business model. A dividend increase would help that along as well. Yielding about 8% and trading at about 16X so it is a good valuation.

COMMENT
COMMENT
August 19, 2015

Doesn’t own this, but has a small piece of a debenture. The company has high hopes on the street as far as strategy and what they are doing. This 2nd impairment in less than a year really has to call into question the due diligence process they have. When they have 2 in a 12 month period, you have to question what their process is, and does call into question whether or not you want to own the stock.

Show full opinionHide full opinion

Doesn’t own this, but has a small piece of a debenture. The company has high hopes on the street as far as strategy and what they are doing. This 2nd impairment in less than a year really has to call into question the due diligence process they have. When they have 2 in a 12 month period, you have to question what their process is, and does call into question whether or not you want to own the stock.

BUY
BUY
July 8, 2015

He likes this at this price and feels it is in its early innings. Grenville Strategic Royalty is like a listed venture capital fund except you get a good dividend for holding it. It gives you exposure to 33 small-mid cap stocks at the same time. He likes the management. Likes the model and holds it in his mom's portfolio. 5.8 % dividend. They will likely increase their dividend in the latter part of the year.

Show full opinionHide full opinion

He likes this at this price and feels it is in its early innings. Grenville Strategic Royalty is like a listed venture capital fund except you get a good dividend for holding it. It gives you exposure to 33 small-mid cap stocks at the same time. He likes the management. Likes the model and holds it in his mom's portfolio. 5.8 % dividend. They will likely increase their dividend in the latter part of the year.

COMMENT
COMMENT
June 19, 2015

There are a lot of players in this space. Their strategy is to buy royalties on a number of companies, so that if one of them stumbles, they are not going to get hurt. However, 5 weeks after meeting with management, one of the companies they invested in was a fraud, so he questioned what kind of due diligence they were doing. Prefers Diversified Royalty (DIV-T) in terms of the yield. 5.4% dividend yield.

Show full opinionHide full opinion

There are a lot of players in this space. Their strategy is to buy royalties on a number of companies, so that if one of them stumbles, they are not going to get hurt. However, 5 weeks after meeting with management, one of the companies they invested in was a fraud, so he questioned what kind of due diligence they were doing. Prefers Diversified Royalty (DIV-T) in terms of the yield. 5.4% dividend yield.

TOP PICK
TOP PICK
June 8, 2015

It is a baby royalty company. They are at a critical mass where they diversified the loans. 5.7% yield. Thinks they can increase the dividend this year or next and then keep doing so every couple of years. They are everywhere.

Show full opinionHide full opinion

It is a baby royalty company. They are at a critical mass where they diversified the loans. 5.7% yield. Thinks they can increase the dividend this year or next and then keep doing so every couple of years. They are everywhere.

Showing 16 to 30 of 36 entries