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

RE:RE:RE:RE:RE:RE:Violation of the External Communication Policy

[Calgaryrider]

I have nothing to bash about this post.   It's wonderful.  I completely agree with th $2.55 valuation.
what we don't see eye to eye is our valuation for NATO.  

This is is already a midstream asset.  It's current value is exactly zero, exclusive of debt.  
I say this because it's just breaking even on cash flow.  I don't care what multiple you use, x times zero is zero.  

This is is exactly how the market is valuing it.  

The proof is in the stock price.

the value of the asset is no more than the contracts it already has in place.  

Why are you slapping a future higher cash flow on NATO when in a free market it clearly is not able to land contracts to fill it up?   Yes, there is upside benefit for any potentials suitor, but there is also the risk that they can't get more people to use it.   If it were sucha smokin deal we'd be at 10 trains already, but here CUS is stuck at 5.5......and who knows if those contracts will be renewed.  There is a lot of downside risk as well.  Maybe not at $0, but the risk linearly escalates as the price for NATO rises.   

I think a JV is a a possibility, BUT, there is a tonne of commercial risk there as well.  

I see an asset writedown coming and a dividend cut by MArch.....I don't see a great deal closing soon. .....maybe a deal, but not a pretty one.

again, the market values NATO at $0.  You can't refute it.