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

RE:RE:RE:Looking to Buy?

[Kherson]

Serge001 wrote: Kherson: I would be interested in your calculations for the payout exceeding 200%.
re: CFO should be fired....  There is the theoretical job of the CFO to honestly report the financial situation which is his culpability. But then there is the practical reality ( I think) that the CFO in a sense is the lap dog of the CEO who wants to accomplish and communicate a specific outcome. In that case the CFO has to come up with a GAAP way of stating the financials in a way to accomodate the CEO goals. In that there are many options for the CFO to handle the financials, then he is not being dishonest in the strict terms.
So now that the CEO is gone, one would think that the CFO can stay and do the bidding of the new management. At this point the question would be: is the BOD earnestly competent and looking to have honest communication with the shareholders and can they be trusted. Does CUS have real breakup value, a leading position in the industry and can get a top notch new CEO. If so, it should be a buy?

No problem Serge. The published payout ratio by the company for the 4th quarter was 179%. My calculated payout ratio for the 4th quarter was 208%. What the company did not tell investors was that the real payout was also based on the new shares issued since the 4th quarter. Anyway you slice it, the new shares that were issued two months ago still got the quarterly dividend, based on the 4th results...
I find it very odd that no one else on this board has picked up this sleight of hand by Canexus. What is disturbing is that I believe that Canexus's 1st quarter for 2014 will be even worse than their 4th quarter for 2013. Say goodbye to the dividend folks...
Kherson