AL ALS Allison Transmission Holdings, Inc. Loading... : Bullish and Bearish Analyst Opinions

Rule notes a valuation disconnect: Large royalty cos (FNV/WPM) trade at ~2x NAV, mid-caps at 1.4x, and juniors (Elemental Altus, Altius, Globex) at ~1x NAV. Either valuation arbitrage closes the gap, or the big companies will acquire the small ones. Specifically, Altius (ALS) is praised as a "natural resources merchant bank" that buys counter-cyclically (e.g., buying lithium royalties when hated). LONG junior royalty companies for M&A potential and repricing. Lower liquidity and higher cost of capital for smaller firms.