RE:Relax...kavern23 wrote
I don't think there is any reason to panic sell CJ at these prices.
Just let the Black Swan event pass...it won't break CJ financially.
As seen int he 2008 financial collaspe...as long as a person was in companies that could weather the storm...eventually stock prices came back and rallied...the trick was to tough skin.
CJ operational is one of the best companies I own to ride out the storm....as long as CJ is making decent cashflow...i don't give a sh8t if this falls under 1.80.
The interest rate cut today was helpful...it will knock the canadian dollar down in value....and it already has.
Look at CJ 2020 guidance versus current:
US/Cad exchange rate: Budget was 76 cents and we currently are at 74.5 cents....this is a lift on revenue for CJ
Differentials budget is 15 for heavy oil and 5 for MSW..current is 13.50 for heavy and 2.50 MSW.
This is a small postive.
The reality is one pop from an OPEC that drives WTI 52 ish and with gain on differentials and exchange rate...CJ would cashflow similar to guidance.
Not as gloomy as it seems.
The gloomy part is these shutdowns in Italy cant spread anymore.
But currently heavy is over 45 bucks and light is close to 60 bucks....CJ isn't going bankrupt at these prices. Just wait it out....not that bad
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Last March as Covid started to hit the expert margin trader who had just used his lines of credit to load up on CJ at $1.80 a few days later was saying that there was no reason to "Panic sell" CJ on this day last year when it was trading over $1.85
Two weeks later CJs shareprice had dropped to 36 cents. Yes this self professed "Expert margin trader always time his trades perfectly.
No wonder this clown went off to that special place for some r and r for the last year.