Terrible StockPeople are playing with fire to assume the bullish sentiment for Co and Ni will translate in a higher price for S. One must consider:
- The asset base is small for this company: Madagascar will never be generate a cent for Sherritt. Terrible production combined with high debt (held by the joint venture) will ensure it never turns a profit. Oil & Gas reserves are dwindling (25% of previous 2017 production) with only 2 dry holes to show for it. The Cuba joint venture is really all that is remaining, which is such an old asset that eventually will fall apart.
- S public debt, even after paying some down, is too high to be serviced by such a small asset base.
Every other mining company in the world is now back to profits and cash flow. Ask yourself why at 6-7$ nickel and 40$ cobalt S can't even increase its cash position. 10 years ago this stock was at 15$, now it's at 1.30$. This has to be one of the worst performing stocks on the TSX.