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

Enough is Enough

[BlueCollar51]

I am out of here at $1.65
 
I think that today’s Share Price strength could be one of those Short Covering / Dead Cat Bounce events.
 
I don’t think CUS will go belly-up anytime soon.
 
Although the “Dumping” of NATO may improve the EBITDA a bit $75m won’t help the debt issue much.
 
I forget what NATO was valued at after the last write down but if you subtract $75m from that and then subtract the difference I don’t see a Balance Sheet “Improvement” it will be WORSE. If they sell N. Vancouver for less than what they valued it at the Balance Sheet will get another hit.
 
It’s not a very encouraging turn of events.
 
Canexus will no doubt survive in some form but I think that it will be a very long time if ever before the current Shareholders are rewarded.
 
I now have the opportunity to do a Kherson and “Invest” what I have salvaged in something that goes to ZERO. (Not Likely; It would be extremely difficult to match Kherson’s performance)
 
There is a “Silver Lining” for me. I have more than enough “Realised Capital Gains” avaliable to apply this “Realised Loss” to.
 
As Always; Do Your Own Due Diligence; It’s Your Money !!

[snootchybootchy]

I sold half my shares today at around the same price (between $1.64 and $1.66).  The whole reason for me to stay in this name was because I felt NATO was being undervalued by the Street.  But it appears that Mr. Wonnacott and his team undervalued it too.  So with my thesis wrong and NATO sold, there is no reason to stay in this name.  I kept half just in case there is another