TSX:CUS.DB.D - Post by User
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itsalieon Jun 11, 2014 3:15pm
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Post# 22650531
SELL
SELLhttps://business.financialpost.com/2014/06/10/how-to-play-the-energy-building-boom/
SELL Canexus Corp. (CUS/TSX) The position: Exited late in 2013 Why don’t you like it? This chemical company had been a steady dividend payer for many years before it decided to build a crude-by-rail terminal. Stabile noted that significant cost overruns strained the balance sheet and required the issuance of more stock and debt. “Canexus cut its dividend, but we think it needs to be cut more,” he said. “It hasn’t fully de-risked the project nor is it operational yet, so there isn’t much earnings visibility at this time.” Potential positives: Acquired by a chemical company; mid-stream company buys crude-by-rail facility.