CANEXUS CORP 6.5 PCT DEBS T.CUS.DB.D

Interesting reaction

[Nawaralsaadi]

Canexus has been hammered with a multitude of bad news over the last 6 months:

- Chemical prices declined substantially, thus bringing the chemical business EBITDA to multi-year lows.
- NATO cost estimates upped by 40%
- Dilutive secondary offering.
- Construction delays and slow NATO ramp up.
- Terminal contracting disappointments.
- CEO fired, a temporarily vacuum of leadership
- Dividend cut by 27%.
 
The only thing missing is an earthquake to destroy their plant in North Vancouver or an Asteroid to flatten their Manitoba plant.
 
Yet, despite all of this the stock continues to bounce in $4s, if this is not a floor, I am not sure what is. At some point over the next 12 months, the tide will begin to turn, and with such lowered expectations, it won’t take much to move the needle to the other direction.
 
Ultimately Canexus will move to the $7s area, the asset base and the company potential earning power do justify such a valuation under normal operating conditions. The only thing that is required to get there is some patience while collecting a sizable dividend still.
 
Regards,
Nawar

[ocean112]

interesting reaction - tell me about it! Went down to $4.03 - now back up to $4.55 - almost a 3.5% drop from yesterday's close. Certainly not the doom and gloom some were talking about this morning...... I think to your point - professionals are taking advantage of the weak retail investors (weak retail investors who caved into thier fear and sold at $4.03 this morning)....because the pros

[ocean112]

correction - its now at $4.62!!!!   (only  1.9% drop from this morning)....... This is why you NEVER sell on bad news!

[Whatwasmyname]

The question now is this even bad news? ...GLTA

[ferret_ca]

a few points here. - cutting the dividend was long over due, probably the main reason the bod fired the ceo. ( i always thought kubera was more of a snake oil salesman)  we do not know what the divvy wil be after the next q as the bod stated it will be re-evaluated on a quaterly basis. this is a smart move for now, gonna take awhile to get this ship in shape!!! -the 60-90 day down time to

[Whatwasmyname]

Yes weird action despite some disappointments and yes finally the " dreaded div" cut. Heck SGY was down nearly 2% today for no apparent reason except as a trading range ... CUS took it all in over 3 million shares and down now over 2% ... hopefully we can look forward for better days ?.GLTA