Sherritt International Corp T.S

Cuban inflation hits 80%

[Stratocheif]

80%. Do you think sherritt will ever get any of the 190 million owed to them when the cuban peso becomes worthless? Sherritt bonds still trading at 53 cents.

[autofocus111]

Cuba should follow El Salvador and declare BTC the national currency. What do they have to lose at this point?

[Contrarian333]

To be precise SCN bonds 57.5 - 60

[Stratocheif]

My broker told me 2 days ago all he could get for me was 53

[Stratocheif]

Anyway, the point is the bond market is much more calculated and rational than the stock market. When a company's bonds sell in the low 50s it means it's teetering on failure. If sherritt bonds go back to 80 or 90, then we can say it's on a solid footing

[thenorthvanman]

Which bonds?  8.5% due Nov 2026?

[Stratocheif]

Yes that's right. They trade at 53. There was a big sale a couple of days ago..somebody managed to sell 400,000 at 58 but now they are back to 53

[Contrarian333]

No they are aren't.  You're just get a bad bid from a retail bond desk.  You must have a small quantity of bonds.  Here is a quote from this AM SCN 8½  26 57½ - 60 23.89 / 22.62 1M x 500 Y

[Contrarian333]

"getting" that is

[Contrarian333]

Geez I'm having a hard time speaking.  Anyway, you get the idea.  The quote is accurate as of this morning.

[thenorthvanman]

I don't know how to interpret that quote.   Am I to assume they are trading at 60 cents on the dollar?

[Stratocheif]

I don't know who contrarian is but I'm a lowly retail investor with a $50,000 sherritt bond. I hold it with RBC securities and I can't trade it myself on thier site as they don't allow..dont know why. I have to call the bond trader and ask him to sell it for me and he doesn't take a bid. He just tells me I can sell it for 53...take it or leave it. Anyway it's a useless

[YourFriendo]

Don't you know Sherritt stock has "torque" when it comes to the nickel price? It's like an option on nickel. When the price of nickel goes from 5$ to 11$ the share price will move exponentially from 50 cents to 51 cents.

[Contrarian333]

Yeah with an odd lot like that ($50K face) you are dealing with the retail bond desk and you're gonna get a poor execution.  

[Ernieandbert]

Why on earth would you sell that bond?  It is 2nd Lien and has an Excess Cash Flow Sweep so the issuer will be forced to buy it back at Par given the excess cash flow this thing will spit out.  And it carries at 23% till then.  The only reason it is sitting in the mid-50's is because it is orphaned and US investors shy away from it given Helms Burton (which, given the strategic

[thenorthvanman]

Whomever you're talking to chances are they are just trolling and don't own any Sherritt bonds.

[autofocus111]

Stratochief, I don't trade bonds but IBKR is great for FX, options, and global stocks. Probably bonds as well. Maybe you should look into switching brokers? If you give me the bond identifier, I'll try to look it up on the platform to see what the bid/ask is. https://www.interactivebrokers.com/en/index.php?f=14512