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

RE:Thoughts /History

[Red_Deer]

See KHERSON__This IS the WAY to Make EFFECTIVE Points__just would take 
effort on Your Part eh !!!!!!!!!!!

Fantome wrote: Up until about a couple of years ago I was a long term holder of CHE...by long term...I mean over a decade....during that time I considered CHE to be a well managed company and one which delivered on its projections and had its distribution well covered.

At the time it was pursuing General Chemical I was a bit concerned that it was biting off more than it could chew.  I ran the numbers and felt that they it was the wrong thing to do.  I held off selling though since the company had made some great acquisitions in the past and perhaps I was wrong about it and so I didn't sell.  When they announced the acquistion price...it seemed very cheap to me and I wondered how they got it for such a cheap price.  I took a wait and see approach.

Following the deal...The Street rewarded CHE with a higher SP..into the low 20s...and so I relaxed. Not long after that the SP started to go down on high volume.  Nary a word from CHE management.  I called Mark...being a long time denizen of the Street I was interested in what he had to say....in a word...crickets..nada....I still hung on for a while....then price still went down....still nothing...called again....got a "song and dance"....then the announcement about the first tranch of the out of court settlement...at that point..I determined that the company had abandoned its shareholders as they should have announced something about the impending court settlement as it seemed to me that word had leaked out from somewhere....at that point....I reluctantly sold my position but still had the company on my watch list...

We then got a second round of a reserve for futher court settlement numbers....at that point I saw the reason for the cheap price they paid for General Chemical...when you factored in the court settlements and the impact on sales in the US...they actually paid too much for General Chemical and my original math proved to be accurate..

All of this was compounded by negative surprises in terms of further writeoffs in subsequent Q reports to the point where IMO CHE is far from being a stock that I should own....a great company that basically went down the toilet....atbthat point I still followed it but it was far down the list in terms of interest

There is now new management...but IMO...it will be difficult for the company to recover from the silly acquisition of General Chemical....it is possible that it can a la what AltaGas has when randy took over but frankly I doubt it

The bottom line IMO is that CHE is a poor investment choice going forward and your money would be better placed elsewhere...