New Comments from TD SecuritiesRecommendation: Buy
Target Price: 6.50
TD hosted meeting with Richard Ott and Richard Mclellan.
TD feels confident unit trains will go into service on schedule within revised budget. No more bad news expected.
Management confirmed the dividend strategy remains intact but TD argues that share price already has priced in a divi cut.
Company is in the final stages of signing a contract for 2 unit trains per week with one customer. Commercial terms have already been finalized and contract structure will be take or pay model. Customer will be touring the site shortly and expect to sign the contract by May. This brings contracted capacity to 80 to 90 percent. CUS expects existing customers to use up all the remaining capacity.
For the remaining work to be completed this year, company has buit in a contingency factor of 25% and company can proportion the remaining work into smaller work orders dramatically reducing any possible cost overruns or surprises.
CEO search underway and expect announcement mid year. No new strategic moves will be started until the new CEO is on board.
There is more about the other side of their business but too much to post here.