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

RE:Cutting Dividend ?

[Roxy27]

 I believe strongly in a floor valuation of $4.50 based on the stand alone value of the chemical business (at a discount).
I do not discount the possibility of a dividend cut entirely but also believe the stock is trading close to its floor valuation.

The market doesn't know how to value/or discounts the value of the potential of the NATO development and the Proforma EBITDA's. I understand the reluctance of the market to take it at face value.
What I do know is that the NATO infrastructure has hard asset value well above the associated debt and likely close to cost as substantial execution risk has been removed, combined with the executed contracts to date. There are multiple buyers for this asset if necessary. 

Look at North American Energy Partners (NOA) as an example of selling off a business component and paying down debt. 
 
If you want to trade the stock then yes, the weak Q1 results (which have been clearly telegraphed by the company) could spook the markets. $4.50 downside and $6.50 upside is an attractive risk/wreward from these levels IMHO.
GLTA