TSX:CHE.DB.E - Post by User
Comment by
CanSiamCypon Nov 07, 2022 8:02pm
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Post# 35080563
RE:open at 9 tomorrow distribution will be increased
RE:open at 9 tomorrow distribution will be increaseduograd:
Agree with all your points - except that I think it would be better to use free cash available to redeem some of their convertible bonds. This will have more impact on unit price moving forward than raising the distribution at this point in time ... by reducing the interest expense on the bonds and eliminating the dilution risk of the bonds converting as unit prices rise. First things first!
I am also surprised that there has been no further news re the Vancouver land sale. I thought that this would be a real deal-changer for CHE.un!
Cheers!
uograd wrote: So several things here. Quarter was a blowout of epic proportion with a payout ratio now of 20 per cent
the key though is that by confirming the significant increase in ebitda they are showing that the worry over the rail strike was overblown as it was settled in a day. they may have a few one times costs but the impact in both q4 and then beyond will be negligible,
They have not mentioned where they are in sales process of vancouer port land so they will save that for the investor day on the 18th when they increase their distribution not back to .10 but probably to .06 or .07
all systems are green and firing on all cylinders.