TSX:CUS.DB.D - Post by User
Post by
pm1231on Mar 27, 2014 3:08pm
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Post# 22377787
Facts
Factsahhh - I figured the doomsday prophets would be out in full force today....some facts to digest....
1) First, the contract negotiations are progressing well, and we’re nearing completion of the sales agreement that will substantially contract up the facility. (Q4 call - CFO)
2) On page 6, while I would like to have been in a position today to announce a signed contract with the four customers, we run additional two unit trains a week. We’ve not quite completed the process. However, we are in an advanced stage of discussions with the party that is an excellent fit for the terminal, and I’m very comfortable with how the negotiations are progressing. (Q4 call - CFO)
3) Additional Contract Expected to be Signed Soon: The company noted that contract negotiations are going well with a fourth customer for two additional unit trains per week (Exhibit 3). Management believes that this contract could be finalized in the next month or so. We expect the shares to react favourably to such an announcement. The company is also in exploratory discussions with new and existing customers regarding the remaining capacity at the facility. We continue to expect that the facility will be fully contracted by the fall of 2014. (TD Research Report)
4) NATO being offered at almost $150M-$200M discount to book value (TD/CIBC Research)
For the shorts....assuming an announcement shortly - no pun intended (days, weeks, months) - its quite the gamble to be shorting at this stage with a potential announcement - I expect a great deal of short covering when it is announced....
For the longs - this is a classic value play - if you hold long.
Good luck to all.