Chemtrade Logistics Income 6 50 Convertible Unsecured Subordinated Debentures T.CHE.DB.E

Alternate Symbol(s): T.CHE.DB.F | T.CHE.DB.G | T.CHE.DB.H | T.CHE.UN | CGIFF

Chemicals Basic Materials

Chemtrade Logistics Income Fund is a Canada-based company that operates a diversified business providing industrial chemicals and services to customers in North America and around the world. The Company's segments include Sulphur and Water Chemicals (SWC), and Electrochemicals (EC). SWC segment markets, removes and/or produces merchant, Regen and sulphuric acid, sodium hydrosulphite, elemental sulphur, liquid sulphur dioxide, hydrogen sulphide, sodium bisulphite, and sulphides, and provides other processing services. This segment also manufactures and markets a variety of inorganic coagulants used in water treatment, including aluminum sulphate, and a number of specialty chemicals, including sodium nitrite. EC segment manufactures and markets sodium chlorate and chlor-alkali products including caustic soda, chlorine and HCl, largely for the pulp and paper, oil and gas and water treatment industries. These products are marketed primarily to North American and South American customers.

TSX:CHE.DB.E - Post by User

Chemtrade Logistics Income 6 50 Convertible Unsecured Subordinated Debentures > 135% payout ratio

<< Previous

Bullboard Posts

Next >>

Comment by leo101on Oct 14, 2020 10:21am

151 Views

Post# 31713477

RE:RE:RE:RE:135% payout ratio

payout ratios are not an exact science. ever since GAAP accounting became "optional" it's like the wild wild west trying to get the truth out of most companies. companies all have their own spin doctors to paint things in the best possible light.

Fantome wrote:

Capharnaum wrote: He said this on Oct 8:

"135% payout ratio, not sustainable. But if business returns, as he thinks it will, payout ratio will go down to 62%. Real problem is balance sheet. Need to focus on asset sales. Has upside, but pretty risky. Better yield stories elsewhere."

Not entirely sure where he gets his 135% payout ratio though... probably doesn't know/calculate that with the cut distributions. Looking at the June 30 report, distributable cash was $0.75 for the first six months. At the current distributions, they would have paid $0.30 off that distributable cash (40%). The distributable cash for the first six months even covers the full $0.60 yearly distribution.

Otherwise, their balance sheet is indeed not good looking. That's why though the share price is this low. Definately an investment on the riskier side, as the new management may decide to cut the distribution further to fix the balance sheet.

haven't owned this for a while as you know and thought I would take a look at it to see how things were going. Agree that debt is an issue and has been for a while.

One question ....What new management are you referring to??....I haven't seen an annluncement of any changes...