TSX:CHE.DB.E - Post by User
Comment by
my2pennieson May 11, 2021 2:35pm
177 Views
Post# 33175049
RE:RE:RE:Phew... :)
RE:RE:RE:Phew... :)Please define "a lot of risk".
Risk of insolvency is pretty much nonexistent. Risk of more than 50% of the previous revenue stream not returning over the next 18 months is negligable (I'd go as far as saying it's an impossibility). Unless you know of any accounting irregularities this stock will stay well north of $5.50. For many of us $5.50 still represents a very nice capital gain.
leo101 wrote: Kherson wrote: my2pennies wrote:
Phew, I was expecting something MUCH WORSE than that. Distributable cash after maintenance, expenses, and capex is $17,302,000 so I'm happy that they can cover the $0.05 monthly distribution with a bit to spare even with these absolutely dreadful current market conditions.
Not gonna sweat a large price pullback tomorrow (as my cost basis is waaaaaaaaaaay lower than the current price), and actuallyhoping it does dive so I can pick up some more. I've already got my stink bids in. LOL. Anyways, I'll continue to be long now that I consider the current $0.05 distribution to be sustainable, especially as revenue recovers as we get back to "normal" over the next 12-24 months.
I'm loving the volatilety and buying opportunities this pandemic has caused in the high distribution paying stock arena. Even a knuckle dragger like me can make ridiculous capital gains and secure very sustainable low cost monthly/quarterly dividend income. It's allowed me to shave 10 years of my retirement plan in under 10 months (yup, I'm patting myself on the back). It sometimes feels like a I won the lottery dream; please don't wake me!
May fortune find its way into each of your pockets. Cheers!
Is the current distribution sustainable? Maybe you should take a closer look at page 2 of the 1st Quarter Financial Statements under the heading "Liabilities and Unitholders Equity".
Kherson
kherson makes an excellent point. a lot of risk in this company.