Canadian dollar getting destroyed.
In one day it lost a whole penny. It looks to be headed towards 0.74 cents. This is very bad for Superior as they have foreign currency contracts for the year at 0.78 cents. They are losing almost 4 cents per dollar for every sale they make in the states based on that contract. There will be no profits this year, just more loses and continued borrowing to pay the dividend. I have been in this stock (not right now) for almost 10 years and never seen such a bad stretch of profits. If BOC cuts rates our dollar will go even lower. This is brutal because inflation is higher than the benchmark interest rate, which means we should be raising interest rates as they are stimulative. So why is the economy going down? Way to much debt on Canadians books and they have stopped spending. What we need is for Canadians to service the debt they have and take on more to spend. This is like trying to cure a crack addict by giving it more crack. Canadians are the most in debt at 1.8 debt to income out of the G11. I see a interest rate cut coming soon, which will be brutal for Superior. https://business.financialpost.com/news/economy/bank-of-canada-holds-key-interest-rate-at-1-75-per-cent