TSX:SRV.UN - Post by User
Comment by
flamingogoldon Nov 10, 2020 2:26pm
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Post# 31871468
RE:RE:Just need to get through winter
RE:RE:Just need to get through winter$7-8 would be well worth the wait even 15 months out especially in this low/zero rate environment. Anyone holding in the teens should take steps to average down now.
logicandinertia wrote: Respectfully disagree about winter being a severe risk. With the vaccines now coming definitively late this year, the risk of another year of quasi lockdown has plummeted to zero. The big risk around SIR was no effective vaccine on the horizon and the bank takes action. That tail risk of going to zero is now very low, which leaves an asymmetric return profile to the upside for the Trust. Hence why the stock is starting to lift.
Even prior to the vaccine disclosure, Sir's banking partners had provided it with covenant waivers and they hadnt touched the BDC loan. Net debt will have fallen when Corp reports their next set of results.
I still contend that this can be a $7-8 stock within 15 months.
good luck.