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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 > Time to buy more?
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Post by 00STS on Nov 08, 2014 8:54am

Time to buy more?

After the run up and collapse yesterday I am tempted to add to my already overweight position in this dog if it goes a little lower. They seem to be confident that the dividend is sustainable but that is probably based on the sale of Nato. Even without the sale of Nato the assets are valued much higher than the current price so, eventually, the share price should catch up to the value even if the dividend is reduced / suspended to pay off some debt IMHO.
I see Canexus as an opportunity for at least a 30% - 40% rebound  which is hard to find in the current market.
BTW is there a reason that Nawar no longer posts here? He did say he was reducing his position - is he all out now?
Comment by uograd on Nov 08, 2014 3:48pm
I think I will do the same.  Dividend is over 10% and a pop well over 4 bucks seems in the cards when the sale of NATO closes while retaining the dividend.
Comment by Analysis98 on Nov 08, 2014 10:16pm
OOSTS .... are you serious?  Divi is not sustainable.  Mgmt is on desperate course to sell and hope the debt they are racking up can be covered by the sale.  Don't count on it.   Big BIG risk here.
Comment by Kherson on Nov 10, 2014 9:13am
Good question, where is Nawar? Maybe the 517% payout ratio has him spooked? Kherson
Comment by sazzygirls on Nov 10, 2014 9:19am
This post has been removed in accordance with Community Policy
Comment by Calgaryrider on Nov 10, 2014 11:15am
Stupid comment (as usual). The interesting thing about this is that CUS management appears content to wait for a better offer. They won't cut the dividend, thus, go into further debt every single day/week/month/quarter. And they won't sing new contracts because they don't want to commercially limit the value of their asset. The value of the asset inherently degrades over time as the ...more  
Comment by Analysis98 on Nov 10, 2014 12:23pm
Agree Calgaryride.  Paying a dividend they can't afford and not signing new rail contracts is risky.  It could blow up in their faces.  TDW warned about this again in their report this morning.  TDW see's several potential risks ahead.  Here are a few comments TDW made in their report today. "Canexus Corp. reported Q3/14 adjusted EBITDA of $16.9mm, well below ...more  
Comment by Kherson on Mar 05, 2015 9:40am
Comment by Kherson on Jan 04, 2015 1:20am
Comment by Kherson on Mar 05, 2015 9:36am
Posted November 8, 2014... Too funny... Kherson