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

RE:RE:RE:Lesson Learned from Superior Plus - Storyline

[Calgaryrider]

Ocean, BlueCollar, thanks for sharing that information.
It is valuable and I think it is indicative of how things will turn out for CUS....eventually.
The chemicals side of the business will pull this dog out of the hole.

You are also right about one thing; that the only significant systemic issue is debt.

However, contrary to your comment, I don't think there are a number of immediate ways to cure this.

A dividend cut will help, but not that quickly.  As you stated, the Board/Mngmt can't afford to eliminate the divvy altogether for exactly the reason mentioned....there are a lot of institutional investors looking for a fat divvy from CUS. 

Additionally, an asset sale may not be something that the management or the board can sustain if they want to keep their jobs.  They simply can't accept an outright low-ball offer (which is the only one they have right now) and keep their jobs....and they shouldn't.  If anyone signs a deal in a JV format, shovelling significant $$ over to CUS is likely to be contingent on further unit train contracts being signed and real cash flow generation.  That's a big "IF".  And it's a big bag to hold as an outright owner.  If deals aren't signed, the funds to get CUS out of this pickle may not be immediately available.  Remember, based on cash flow modeling, NATO is worth ZERO today.

This is why I say there's more pain to come. 

I'll wait and by <$2.  As you've said, the patient will be rewarded eventually.  But, being liquid right now is pretty nice too.......which is EXACTLY how midstream and E&P companies are thinking too.