TSX:CHE.DB.E - Post by User
Comment by
quest13on Jun 19, 2020 4:59pm
226 Views
Post# 31171262
RE:CHE closing price
RE:CHE closing priceI have been a very long term holder of shares (units) in this business and my belief is that its price has been driven down by all the talk from "the sky is falling" people.
it had a bad decision made on the purchase of General chemicals a few years ago and that caused its price to drop into the $9 and $10 dollar range (from the $14 range) but the real drop occurred this year when the pandemic hit and all was to be lost in the opinion of some who came out with prophecy of deep recession or even depression.
a little bit before everyone became aware that lockdown would be necessary CHE forsaw the uncertainty coming and dropped the distribution from $0.10 per month to $0.05 per month. At that point the sky was again supposed to fall and the price was driven down to the $3.00 to $4.00 range.
At that point I was buying more units and will be holding till the distribution rises back up to the $0.10 it was before and the price rises back up to where it should be (in my opinion)
I think the market is recognizing that the business can afford to pay the $0.05 distribution out of its stable cash generating business.
I attribute its price rise to simply that recognition (the longer the distributions continue the longer the price will rise in my opinion)