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



TSX:CUS.DB.D - Post by User

Comment by rustybladeson Nov 06, 2015 5:26pm
220 Views
Post# 24268407

RE:RE:RE:RE:RE:RE:RE:RE:RE:3rd Quarter Results...

RE:RE:RE:RE:RE:RE:RE:RE:RE:3rd Quarter Results...
phoenix_trader wrote: I bet most CUS holders have an ACB of +$2. Most expected and supported new management to deal with NATO (done) and use the chemical assets to pay off the banks. Instead they jump at the first opportunity to sell, why and what side deals benefit management. With SPB we are jumping into the fire with no flame retardation apparel. Your ID dates Oct 19th, can you explain why your sudden interest.


Phoenix, I'm of the same mind as you. Why sell now  One of the paragraphs in the earnings release that caught my attention was this one "Canexus' North American Sodium Chlorate business continued record breaking performance in Q3/15. Record COP of $19.6 million (Q2/15 - $19.1 million; Q3/14 - $14.5 million) was achieved."

I prefer to hang on and see an undiluted upside.  Most of the analysts reports on SPB mention the accretive nature of the deal to SPB and the benefit to SPB. The buy recommendations for SPB are predicated on the deal going through. If the deal goes through the higher quality of the CUS earnings gets diluted by the drywall and propane businesses and the lower margin SPB chemical business.

There is actually no downside to voting NO. If the deals goes trhough I can exchange to SPB and sell, although because of a Q2 closing it's a bit of dead money for a while. If NO carries the day, we will probably be better often and I can be patient.

I'm hoping some of the institutional NO voters are getting the whacking sticks ready for management.

Vote No. We only need 34% to carry the day. The Yes side needs 68%.
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