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

RE:RE:RE:RE:RE:RE:RE:RE:Quite a striking statement by Enbridge: Rail is here to say

[MustangMatt]

I get that no risk no reward, however, you need to quantify that risk vs. reward.  I am no Warren Buffet, however, I have read him talk about the problems with commodities.  If your company can not control the price of the things it sells there is real risk to the business model.  Therefore, commodoties are always more BETA.  The biggest problem I have right now is that so much of Canexus's cash flow is predicated on the chemical commodoties it sells.

I looked really hard at this company about 8 months ago, I wanted in because I am a shareholder of MEG energy.  It got me thinking of Canexus,  I liked the fact they were looking to diversify it's business in to rail transport/loading.  I also really liked the fact that they wanted to get in on the oil train shipping business.  I even also like the fact that they had the competitive advantage in the chemicals side of there business and were going to be a first mover on this big terminal exspansion.  It was really a matter of luck or it could be said I saw what I thought was a better opportunity elsewhere that I did not buy it there.  However, you also buy management when you buy a company and right now who is manging the company?  Who will be managing the company in 6 months? 

Look, I think things can turn out ok here, all of the positives I listed above are still there, I am just saying it is risky here.  Sometimes an investor does have to buy it higher and pay more for some of that risk to be taken off the table.  cheers Matthew