TSX:CUS.DB.D - Post by User
Comment by
Nawaralsaadion Apr 04, 2014 9:32am
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Post# 22410582
RE:RE:RE:RE:RE:Quite a striking statement by Enbridge: Rail is here to say
RE:RE:RE:RE:RE:Quite a striking statement by Enbridge: Rail is here to say Yes, I do believe the expansion and the budget is now under control now. The people who were in charge of the project have been fired (CEO and the NATO vice president). I don’t think there was fraud, but certainly incompetence, having said that this is not the first time major capex projects in Alberta go through cost overruns. However due to those cost overruns, any potential increase in the dividend due to the project is gone, once NATO is fully operational, CUS will go back to pre-NATO cash flow per share, which means this whole exercise has added no value to shareholders, and this is why I am glad the CEO was fired. The stock price on the other hand has swung way too much to the negative; I do see an upward adjustment as soon as CUS signs more capacity contracts and reports progress on the completion of the project.
Regards,
Nawar