Chemtrade Logistics Income 6 50 Convertible Unsecured Subordinated Debentures T.CHE.DB.E

Alternate Symbol(s): CGIFF | T.CHE.UN | T.CHE.DB.G | T.CHE.DB.H

Chemicals Basic Materials

Chemtrade Logistics Income Fund is a Canada-based company that operates a diversified business providing industrial chemicals and services to customers in North America and around the world. The Company's segments include Sulphur and Water Chemicals (SWC), and Electrochemicals (EC). SWC segment markets, removes and/or produces merchant, Regen and sulphuric acid, sodium hydrosulphite, elemental sulphur, liquid sulphur dioxide, hydrogen sulphide, sodium bisulphite, and sulphides, and provides other processing services. This segment also manufactures and markets a variety of inorganic coagulants used in water treatment, including aluminum sulphate, and a number of specialty chemicals, including sodium nitrite. EC segment manufactures and markets sodium chlorate and chlor-alkali products including caustic soda, chlorine and HCl, largely for the pulp and paper, oil and gas and water treatment industries. These products are marketed primarily to North American and South American customers.

TSX:CHE.DB.E - Post by User

Chemtrade Logistics Income 6 50 Convertible Unsecured Subordinated Debentures

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Comment by Khersonon Jun 08, 2019 7:07am

49 Views

Post# 29808393

RE:RE:RE:RE:RE:CEO's Comments

bodiggity wrote: I am a new shareholder here and I see tremendous value especially at this level. Well worth the risk especially given the nice distribuition. Should be back in the teens verys soon.

Scotia Banks take:

OUR TAKE: Positive. We hosted institutional meetings in Toronto on May 13 with CEO Mark Davis and CFO Rohit Bhardwaj. The three recurring topics discussed in meetings and luncheon were (1) an update on the litigation reserves, (2) the assumptions supporting the newly-introduced guidance, and (3) the sustainability of distributions. As discussed below in more details, we believe that the distribution is sustainable. We believe that as it gets reflected in the company's unit price, dividend sustainability risk should significantly decline. We believe the company should be able to deliver 2019 results within its guidance range, with further upside potential in 2020 as (1) SPPC's right-sizing is felt, (2) WSSC enjoys further margin expansion, and (3) caustic soda prices increase from what we believe is a trough this quarter. We believe deleveraging could be accelerated through an extended caustic soda cycle and potential asset sales. We reiterate our Sector Outperform rating and $12.00 target on Chemtrade units.

I hope that you realize that there is also tremendous risk here! Just ask this SH board why Sentry Select unloaded their position in Chemtrade considering the fact that they were involved in many of Chemtrade's bought deals at much higher prices than what they ended up selling at!
Folks, there will be more bad news coming out of the Chemtrade camp concerning the Canexus assets!
As for Caustic prices, a quick google search will tell you why they will not be rising anytime soon!
Kherson

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