Summer Sale

50% off Premium Yearly

00days
00hrs
00mins
00secs
Stockchase Opinions

The Panic-Proof Portfolio (Stockchase Research)SIR Royalty IncomeSRV.UN.TOTOP PICKDec 14, 2023

Stockchase Research Editor: Michael O'Reilly

This Canadian developer of 53 restaurants, with brands like Jack Astor's, declared a special dividend for holders as of Dec. 21.  It pays a good dividend that is covered by a payout ratio of 88% of cash flow - it targets 100% to unitholders.  It trades at 9x earnings, under 2x book value and supports a 21% ROE.  We recommend placing a stop-loss at $14.50, looking to achieve $20.50 -- upside potential of 18%.  Yield 7.0%  

N/A

Stock price when the opinion was issued

$15.72

As of Jun 19, 2026. Market Open.

investment companiesfunds
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

You might be interested:

COMMENT
We are seeing lots of money going into reopening themes. Not early here. Relative to pre-covid, what is the environment? Compared to pre-covid on the 2-year chart, it looks like there is opportunity. However, it was already dipping pre-covid.
WAIT
A big drop of 30% recently has brought it back to long term support around $10.50. If it fell below $9.50, then it will probably fall to $7.50. Maybe a good buy opportunity here, but he would want to wait to see if it creates a basing pattern.
TOP PICK
One of the smallest restaurant trusts with concentration based in greater Toronto area and high-end restaurants. There is inflation protection and business is very good right now.
SELL
There will be an impact on the cash flow for distributions. Would prefer some of the bigger brand names that are more liquid.
PAST TOP PICK
(A Top Pick Nov 29/05. Down 5.4%.) Yield is roughly 13.5%. 3.7% growth in stores. Still likes.
PAST TOP PICK
(A Top Pick Nov 29/05. No change.) Distributions have been roughly 1% a month. Still likes.
TOP PICK
Every year trusts do very well going into the RRSP season. Because of this, all 3 picks are income trusts. Yield is close to 14%. Have a number of restaurents downtown Toronto. Last year there was no hockey season so expects with hockey back that business will do very well over the next 3 months.
DON'T BUY
A restaurant trust. This is a part of the market that he stays away from. A very tough business, cyclical, very hard to make money in the longer term.