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

Cost 356MM, Sale 75MM

[MOJOJONO]

Ouch.

"At least" yoke off their neck, but damage is done. We can only look forward to the future now.

[pierrelebel]

Shares are trading 10% higher  at the moment ($1.58)

[Rockefeller2012]

What was a fair price for NATO given the enviroment we are in, forward looking energy prices/growth/demand/pipeline constrictions, etc.? Does anybody know or have any compareables?  Here is some info I have found just quickly: https://www.nrcan.gc.ca/sites/www.nrcan.gc.ca/files/energy/files/pdf/2014/14-0173EnergyMarketFacts_e.pdf Page 28 you can see facilities in Canada.  Gibsons

[Jackroy]

The company needed to "blue sky" itself and this action was part of the pain. New management needed to free itself from the shackles of the old managers. If they hold this for one, two more years and lose another 15 - 20 + million, how has that helped. Analyst and investors would be griping at the bad investment. I hate the price but like the move. The stock was 10 before this fiasco on

[Roxy27]

The company had 135 million shares when the stock was in the high $9's. This was when the market was pricing in NATO income but not the extra $200 million in costs. IMO, anyone holding this now should sell in this short covering liquidity. There is no way for this to double (or even 50% upside) and there's no reason to hold unless you are getting that kind of return for the risk.  I

[Jackroy]

Thanks Roxy, Based on your numbers, really what do you think is the right value. The company makes 80 - 100 mm, ebitda. Can it not handle the increased debt - start chunking it down. Could you not see this stock in 1 - 3 years at $3. Good investment from here. Agreed, bad investment before this.

[Roxy27]

In short, no. I don't think it will be worth $3. I think it's worth between $1-$2 per share.  I thought it could be worth maybe $2.25 max based on on EBITDA of $125 million. If you think EBITDA is under $100 (and it could be as they've erroded their market position by over focussing on NATO) then its going to be worse. I think its worth maximum an 8X EBITDA multiple (some on

[Jackroy]

Thanks Roxy - good post