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Bullboard - Stock Discussion Forum CANEXUS CORP 6.5 PCT DEBS T.CUS.DB.D

TSX:CUS.DB.D - Post Discussion

CANEXUS CORP 6.5 PCT DEBS > a few posits
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Post by mike49 on Apr 21, 2014 11:46am

a few posits

morning folks.
i don't need any convincing one way or the other on the merits of cus ownership as for me it is a show me play and gibson is safer.(imho)
i am from the  edmonton area and work there and have a background in rail and construction.
it has been a long time since any  major project here has come in on time or budget-they get finished though;albeit with some companys nursing a very bruised bottom line.
all capacity at nato will be booked with no problem.a more important detail is getting the railways to move the product.it is not as easy as one thinks.i don't think that new pipe will ever pose a problem for kinder morgan,gibson,or canexus in this area-the facilities are too integrated with other operations but a more pressing worry would be another derailment somewhere.
i mention gibson above simply to point out that the best measure of nato timeline/budget is to see who is building it on the ground.the nickname up here is brutalheim as the amount of construction and congestion is,well,brutal.gibson pushed at hardisty and had their whole building blow over in our alberta windstorm a few months back.within a week the wreakage was removed and construction restarted 24-7 with nary a public peep.what does that say for cost and commitment?
the only thing i can say about whether there will be a divvy cut is that sometimes these things become self fullfilling prophesies.the'market' prices in a cut so management sees it as way to agree to appear more legitimite and then the sp really gets nailed.
maybe the debs are safer for now.speaking of which,isn't one series due in 2015?what is the plan for that?
good luck folks.
my schedule takes me to hardisty/provost till next days off(may long weekend).for the summer i will be redwater area and will pass on any ground observations then.
Comment by BlueCollar51 on Apr 22, 2014 9:11am
Mike you have made some good points.   One important factor that I have not seen much if any discussion about is how much traffic the North American Railway System can handle.   The assumption seems to be that Oil by Rail terminals will be built and the Railways will take care of getting the stuff from A to B.   Railroads like Pipelines have a maximum capacity. I have absolutely no ...more  
Comment by Nawaralsaadi on Apr 22, 2014 9:43am
Blue, I have been looking a bit into this matter (I am yet to form a firm conclusion), but it seems due to the natural gas switching caused by low prices and new pollution regulations, the North American rail network has lost a lot of its coal business (coal presents 41% of rail volume in North America), for some background you may read more here: https://www.aar.org/keyissues/Documents ...more  
Comment by greenhawk on Apr 22, 2014 10:33am
The harsh winter caused lots of problems for rail especially coal deliveries. Seems like coal loses out to oil and potash and goes to the back of the line. But interesting that beer is cited as one of the big trafiic increasers on BNSF. Who would have thought that beer and oil would compete for freight space! With a pickup in the economy congestion is something to watch. As somemone ...more  
Comment by Roxy27 on Apr 22, 2014 11:07am
Nawaralsaadi, Short comment with regard to coal/NG switching I personally see that trend reversing as NG storage levels have been depleted materially and NG production is challenged to ramp up enough to fully restock at current NG prices. The implication is that NG prices have support at current levels and have good potential to increase as seasonal demand ramps up. Coal switching now becomes ...more  
Comment by Nawaralsaadi on Apr 23, 2014 10:31am
From. https://www.firstenercastfinancial.com/forums/showthread.php?t=1973&page=44 Ontario ceases coal-fired generation, Alberta downsizing coal's footprint • Ontario authorities last week said the province's last remaining coal-fired generation plant has stopped operating. The province-owned 306-MW Thunder Bay plant had been in operation since 1981. The plant is scheduled to be ...more  
Comment by Kherson on May 12, 2016 10:10pm
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