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.

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Chemtrade Logistics Income 6 50 Convertible Unsecured Subordinated Debentures > Future SP Action

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Comment by Khersonon Nov 28, 2020 12:40am

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Post# 31993788

RE:RE:RE:Future SP Action

Kherson wrote:

Kherson wrote:

Fantome wrote: While it is a rogues gain at best to predict future short term price action...I will give perspectives based on my experience on the Street...

What we have seen the last few days is typical price action....the shorts needed to cover after the financials came out and the strong commitment by mgt to hold the distributions...this buying pressure drove up the SP

The question then becomes...who would sell to the shorts with a 14% yield?

The market is made up of different investment objectives...some people with a very short investment horizon would have bought the shares in the low 8s from the short sellers and after the announcement sold back to the shorts at a great profit for a few days of holding.

The question becomes is this action completed or not?

Hard to say..

But if it is not over then it will be shortly

What happens next?

The share price will likely drift in a narrow range until the next quarterly report. Do not be surprised to see some SP retracement up to half of the gains we have seen since the announcement on the financials.

Why??

Because a retracement is normal.... and.....

Because there are a lot of Khersons out there that do not believe management and will need to see a confirmation in the next quarterly report that they have delivered and the bad news is truly behind us.

I suspect that if the next quarterly is solid we will then see another keg up in the SP... if not then the Khersons if the world will say “I told you so” and there will be another short attack.

For those if you who have confidence in the company....the likely retracement will be a buying opportunity

The big problem that I see moving forward is that Chemtrade paid too much for the Canexus acquistion, which has resulted in the large debt. I believe that we will see more writedowns in the 4th quarter of these assets.
Questions that unitholders should be asking themselves is why did Sentry Investments dump their large position in Chemtrade, if the distribution is safe and considering that Sentry was a big buyer of the Subscription Receipts for financing of the Canexus buyout?
Why has there been no buying of Chemtrade units in the market by insiders? If everything is now roses, we should be seeing major purchases by insiders this week!
And finally, why is the same paid pumper from the old SH Canexus board on this board using his old trick of creating Multiple Accounts?
What Chemtrade investors fail to realize is that I was an outspoken critic of Canexus once I realized that they were lying to investors concerning their Oil to Rail terminal in (Blunderheim) Alberta and the true state of disrepair of their chemical plant assets.
Kherson

Posted May 13, 2019!
Kherson