CANEXUS CORP 6.5 PCT DEBS T.CUS.DB.D

RE:RE:RE:RE:Doom and Gloomers parading today

[Calgaryrider]

With what has happened here, I would suggest that Private Equity (an activist investor, not an outright owner) is not far from coming in and taking a significant stake and then exerting some muscle.  Step 1 will be demanding that the Chairman of the Board should resign and other Board Members with Blunderheim blood on their hands take a walk.

What's happened with CUS is nothing short of astoundingly poor risk management all the way up to the highest level.   [That is their ONLY accountability to the shareholder]  Under this kind of "leadership", I would argue the assets under their control are worth more separately, as pieces, to others.  Prospective buyers of assets see this as well.  Why would they pay top dollar for a good assets that's being run by a bunch of proven monkeys?

This conversation of whether they should sell North Van or not is rediculous.
It's like arguing about how to arrange chairs on deck of the Titanic.

We went through this already!  Did you forget already?  Delay asset sale to ensure maximum value.  Value drops.  Then, you're left with almost nothing.  Now, with North Van you're trying to do the same bloody analysis.  Should CUS sell or hold?  The answer is, it doesn't matter.  Leadership will make both options fail.

The fact is, any serious buyer will wait and wait until the seller (CUS) gets more and more desperate.   By holding, the UPSIDE for CUS (the risk for any potential buyer of North Van) is essentially zero.  Keep in mind the best case scenario is that they spend 5+ years paying off this debt and the share value creeps up pennies per year.

The worst case scenario is that market conditions, performance, etc. change (which is almost a certainty), further putting pressure on CUS to sell.

Waiting to sell North Van in the "hopes" of better value is a fool's game that CUS just lost at.
Selling North Van today at presumabely a poor price due to a poor value - due to the people running the show, not asset value - is also a desperate action that only preserves the the inevitable.

Steps to success:
1) Change Leadership
2) Increase asset value immediately; prove it can be done.
3) Sell off what you can.
4) Then you have a real company.