TSX:CHE.DB.E - Post by User
Comment by
toppgunnon Nov 26, 2020 1:34pm
220 Views
Post# 31982022
RE:RE:Cheap nellies are watching train leave station
RE:RE:Cheap nellies are watching train leave stationI agree totally with your comments but believe this company has more upside than downside.
There biggest positive strategy was dividend reduction back in March from .10 to .05 monthly and this wil save the company 60 millioin per year.
Another factor is the pricing of some of their products which the company expects to be better in 2021. This will have a huge significance on the bottom line and could show alot of upside. However, it pricing turns to the downside then obviously more challenges going forward.
The pandemic has seen alot of extremes in pricing of products. The forestry industry for one has never been better pricing for Plywood/LVL and Oriented Strand board. Record highs for those products and huge profits for forestry companies. This was never forecasted even from the directors back of those companies in March or April only to be realized in the summer months and onwards. West Fraser, Norboard, Interfor, Canfor are some companies to check out in turn around in share prices for Canadian based companies. West Fraser recently bought Norboard for 4 billion dollars a week ago.
Chemtrade could see similar as many products have been restricted with less supply and can change very quickly as inventory gets low with less manufacturing. This can easily happen in the chemical industry.
I still see great upside going forward and see 10 dollars instead of 4 dollars one year out for Chemtrade.