We know that you like royalties – What do you think of FRU specifically?

Hi there,

We do like royalty companies due to their favourable cost profile - however, FRU is an oil and gas royalty company. It already cut the dividend this year and the outlook on oil & gas isn't exactly favourable at this point. The resignation of the President and CEO effective "as of today" is also a concerning sign and it was not expected.

To be frank, we just don't like the oil & gas industry as it is too volatile and subject to macro factors. Case in point, the Saudis began selling oil at a discount yesterday which caused oil to crash (which is why FRU and most others crashed). Being at the mercy of one country's whim's makes for a risky investment strategy.

Mat