MFS Charter Income Trust V.MCR

Primary Symbol: MCR

MFS Charter Income Trust (Fund) is a diversified closed-end management investment company. The Fund’s investment objective is to seek high current income, but also considers capital appreciation. The Fund primarily invests in debt instruments. The Fund also invests in corporate bonds of the United States and/or foreign issuers, United States government securities, foreign government securities, mortgage-backed securities and other securitized instruments of United States and/or foreign issuers, and/or debt instruments of issuers located in emerging market countries. It invests in a range of fixed income sectors, such as high yield corporates, emerging markets bonds, investment grade corporates, Non- United States government bonds, commercial mortgage-backed securities, mortgage-backed securities, collateralized debt obligations, municipal bonds, asset-backed securities and United States treasury securities. The Fund's investment advisor is Massachusetts Financial Services Company.

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MFS Charter Income Trust > Trans Mountain pipeline expansion cost balloons to $12.6-bil

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Comment by LTIH1324on Feb 07, 2020 3:35pm

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Post# 30660103

RE:RE:RE:Trans Mountain pipeline expansion cost balloons to $12.6-bil

Another reminder as to why market behaviour is so strange. A couple of thoughts:

How was this large cost increase announcement not expected? Anyone that has done work on this should know.
Does the economic feasibility of the TMX pipeline change? No. It was known long ago and the expected unlevered return is still strong.
Will there be headline vol in the next couple of months along with protests? Of course, but that was to be expected.
The price at book value with this project significantly derisked blows my mind – I think investors time horizons are insanely short, they cant stand to wait a couple Qs to see TMX hit the FS.
I wish the company wasn’t in the blackout period and could buy shares in earnest. IMO, a lost opportunity, for low risk shareholder ROI.
It was known at least amongst a circle of investors and discussions with industry insiders I know that Macro’s spread was at least 2x stated contract revenues (very conservatively), with Macros spread being the mountainous cost plus contract, I think its likely much higher, but I place no value on that in my intrinsic value estimate and look forward to be pleasantly surprised in the years to come.
I am surprised given the last couple weeks of news, people aren’t more bullish. Today is a good day IMO.
I’m not phased by the price movement and expect vol up and down in the coming months, time horizon arbitrage is an investors friend assuming even a conservative thesis stays in tact - I will continue to selectively add