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.

TSX:CHE.DB.E - Post by User

Chemtrade Logistics Income 6 50 Convertible Unsecured Subordinated Debentures > Scotia comment

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Comment by Khersonon Jun 27, 2022 12:47pm

226 Views

Post# 34784985

RE:RE:Scotia comment

GregC24 wrote:

incomedreamer11 wrote:

(Relatively) Recession Resilient - Upgrading to Outperform

OUR TAKE: Positive. We have upgraded CHE to Outperform, as we believe the business model can outperform its basic chemical peers through a recession, at least on a relative basis. Our revised PT moves to $10.25 from $9.50.

Inside Our Note

Caustic soda should remain tight N/T, due to: (1) technical issues in the U.S.; (2) soaring EU electricity costs; and (3) some demand recovery in China. Spot caustic is much higher than CHE’s guide of $575/mt.

How is that possible? Kherson said that the Q1 guidance had already accounted for the current caustic soda price? Was he lying? Uninformed? Or both?

Greg, you really need to educate yourself on the difference between spot prices for Caustic and long term contracts for Caustic! The following is a good exercise for you and your minions, what percentage of Chemtrade's caustic sales are under long term contracts?
Just maybe Chemtrade is planning on yet another Equity or Debenture Issue (it's been over 6 months) and a little positive support from an Underwriter certainly would help?
Too funny!
Kherson

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