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

TD Investment was correct

[hawk35]

Last month TD made the comments below.  I highlighted three points in their conclusion.  They were right.  And their 12 month target price was 4.00.  Looks like that could happen to.


TD Investment Conclusion
The bulk of Canexus’ cash flow continues to be generated by its relatively
stable pulp chemicals business. Although Canexus offers the potential of
long-term asset value in its crude-by-rail operations, we believe that
meaningful execution risk remains. With planned unit train activity levels
deferred into 2015, we believe that the shares do not offer an attractive
risk/reward proposition at current levels and that the current dividend level is
not necessarily secure.

[Opportunus]

I don't agree. What just happened is not an execution issue. It's something outside CUS's control. CUS has been reacting to it in a correct way. CUS's share holders are just unlucky. One thing for certain is that when you are weak, predators are more likely to visit you.

[MOJOJONO]

From the excerpt, my interpretation of this TD comment (No link?), is referring in general to CUS's execution risk of NATO once it has been setup successfully. An issue separate from whether or not the MEG dispute occured.

[amugsgame]

CUS shareholders being "just unlucky" would be a tornado ripping apart the NATO facility. The MEG issue is not an act of god....it is an issue of having a contarctual agreement that was not watertight. This fact that it has gone to court (and not immediately settled) demonstartes that the deal between MEG and CUS had not been fully clarified and written so that both parties knew their

[roscoe74]

The MEG spat is nothing unusual in the patch. Any company will leverage access to squeeze whatever they can from the competition. Most of these dustups never see any publicity because the regulator rules on them. It can be very interesting though. I recall one instance where the regulator told Company A to take space on Company B's pipeline rather than approve A's pipeline application. B