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

RE:RE:RE:Tip of the hat to sherry352

[Kherson]

bonafide wrote: Hard to imagine any additional negative surprises as the company has been very proactive in exposing its current weakness to the market.  The recent disclosures smack of the professional appologies made by public figures when they slip up.  It is amazing how the public will forgive someone if they display humility and contrition.

Brian Hemming told me last week that the effect of the rail strike was real, but would not have a material effect on the company financials.  I'm wondering if there has been an actual change of thinking, or if the company is taking a bit of a "this is as bad as it gets" approach".

A rail strike is temporary and is not something that would have any long term effects or act as a catalyst for policy change. 

A small distribution cut at some point this year might be the prudent thing to do if the company keeps getting dealt 2's and 7's (worst hand in poker).

I just don't see a distribution cut in the cards at this time because the 13 year distribution history immediately becomes a historical anecdote as opposed to something investors can depend upon.  If the company was going to "throw the baby out with the bath water", why would they bother front loading the bad news. 

Maybe Davis should personally feel contrite after all of the money that he has caused investors to lose and pay back that $5 Million Long Term Incentive Bonus!
Kherson