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

Buyout

[Jackroy]

I think that is a possibility. Clean up the company and you have a overleveraged, but manageable operation that generated great cash flow. I think this stock is now a triple. I have a cost base of 3.60. I think I can get back there, but I bought some more at $1.20 to help me get back there sooner.

[Calgaryrider]

Save your cash, this'll be a penny stock later this week when the write downs continue.   ePS will be dawgawful negative.

[Jackroy]

Calgaryrider, what will they be writing down still?  I can't see a negative EPS after any one time adjustments

[Calgaryrider]

In Q1 they wrote down NATO to an value they pulled out of thin air that assumed it was "market value", which was much higher than $75M.  After that, they sold it off for a fraction of that.  That additional gap down to $75M has yet to be written down on the books.  Regardless of how the chemical business has done (and via Superior, we know it won't be great), there

[Jackroy]

Ok, I get that, but that is priced in already.  Everyone knows the value they sold it for so writing it down to the announced market - who cares.  Like I said the books will be messy until the end of the 3rd quarter. I disagree that the chemical business will be poor.  All of their US$ sales hedges are off in the q2 (they still have some debt hedges).  Superior indicated in

[Calgaryrider]

I agree that the writedown should be priced in, but I don't believe it has been priced in.  All Canexus needs is another $100M loss in the headlines to push it below $1.  Heck, news of the NATO sale took the price up! (Albeit temporarily) I remember what Superior said.  Even if they strongly implied that CUS should've benefited, I think it's silver lining in what is a

[Kherson]

North Vancouver write-down if the value on the books is higher than what the market was offering? Kherson

[Calgaryrider]

Higher, I meant.  Correct.