TSX:CHE.DB.E - Post by User
Comment by
Khersonon Jun 20, 2019 6:57am
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Post# 29843087
RE:Greg Newman on BNN
RE:Greg Newman on BNNsherry532 wrote: Confused character.
"The dividend is not safe, though it will be maintained. They've had litigation charges and small-caps overall have done poorly in Canada. They also have a lot of leverage. This stock has been hammered till its cheaper than its three-year average. He sees a 13% growth rate. Their payout ratio is 125%, but will be 69% in 2020. If managers are correct about its predictions, you can hold this, but if not, this is risky."
Investors really need to watch the BNN video, but what I found interesting is the Newman clearly states that Caustic Soda prices remain weak and Chemtrade will sell assets to maintain the balance sheet. Therefore, selling assets will result in the payout ratio going up even higher.
But if you take a look at Newman's past prediction on Chemtrade back in November, he was telling investors to buy at the $11.50 range!
What is interesting for me is that Chemtrade is going down the same rabbit hole that Canexus did!
Too funny...
Kherson