Sherritt International Corp T.S

Reality!

[Contrarian333]

I don’t know what you guys were expecting but as I have said forever on this Board – Sherritt is an option on higher nickel prices.  Once the nickel prices falls Sherritt is an out of the money option (i.e. they don’t generate positive cash flow).  Its all well and good to expand the business , or try to monetize some technology when the cash flow supports it but when the nickel price falls below your cost of production all priorities have to change.  Cash conservation becomes key.  Management doesn’t control the price of nickel (or cobalt).  The only thing over which they have some control is costs.  The share price held in relatively well in the face of a weak nickel price until this TD report (and perhaps, as someone suggested those who had prior knowledge of that report).  Its all about the price of the commodity as it is with all commodity producers.  Now we’ll see what we have in a CEO – and how Leon handles this business with a lower commodity price.

[YourFriendo]

Except it's not. Nickel went from 5$ to 15$. Basically tripled. The stock price during that time was flat. An option would have exploded if the underlining asset tripled. You don't understand this company. You never will.

[CommonCents123]

I like the word REALITY Contrarian333.  Not even sure it's a good play on the Nickel price.  It didn't go up proportionately to the price of Nickel and the same on the way down. It's a pretty bad barometer IMPO. I have reached out to the company and asked about the efficacy of expanding production when ni markets are saturated, the EV pipedream is dying and the economy is

[FrozenInOntario]

Contrarian, Disagree on the nickel option price.    Sherritt was first a turnaround and a deleveraging story.    Too bad the nickel/cobalt price did not held up for longer so they could repay all the outstanding debt. Seems a bit obvious that they did not expect nickel price to plunge that much, otherwise, they would not have paid the 29 interest in cash like they just did

[YourFriendo]

Google escalating commitment.

[rkhosla]

what TD report? The November 3rd TD report? Or is there a new report out?

[Contrarian333]

Someone on the street was talking about some kind of note out of TD - clarifying this - probably won't know until tomorrow

[rkhosla]

Thank you for responding - keep us posted.  As an aside, the DBRS announcement was posted on their own website while the market was still open yesterday.....

[Contrarian333]

Confirming that the TD report that a "street" friend was speaking of and was characterizing as new was indeed the Nov 3 report and not a new report.  

[rkhosla]

Great thanks - it was me who mentioned TD's downward $340mil revision in ebitda so maybe that was the trigger for you - but that was from the Nov 3 note.   Glad nothing else out there (yet) to drive us down further.  

[VerificateASAP]

This post has been removed in accordance with Community Policy

[CommonCents123]

VerificateASAP the pro's seem to have a differing opinion on the quality of the balance sheet.  Perhaps you missed my recent post.  Please read the attached articles to garner a different perspective. As well, just because book is $1.72 that all evaporates with the millions in debt.  The stock is at at $0.33 and is very indicative of investor sentiment about debt, prospects

[rkhosla]

What's the strike price of this option??  I would've thought we would be in the money with Ni at nine dollars. Last quarter's reference price.

[YourFriendo]

The fact we are still talking about this bogus theory by Contrarion well after the fact of it being completely disproven by actual numbers is mind blowing.