Sherritt International Corp T.S

Is this company high risk????

[Stratocheif]

So they say essentially the loss was due to higher input costs...135% increase in cost of fuel for example. Ok fine. But I seem to remember 10 years ago, oil prices were thru the roof, nickel was lower than now, and sherritt was doing well with its sp around $10 and it's bonds trading at 105.

It never changes...they're gonna spend, spend, spend. Spend on new equipment, spend on oil well site rehabilitation, and on and on. Always the priority is that they are such a wonderful corporate citizen. Well if oil stays high or goes higher as some predict, and this causes recession and collapse of nickel price, they'll finally be looking at bankrupty and bankrupt companies are not good corporate citizens. 

[VerificateASAP]

This post has been removed in accordance with Community Policy

[rkhosla]

Isn't a high oil price good for Ni and Sherritt? Drives the 'green' revolution to increased EV/battery use?  Just look at the effects of Russia gas/oil taken off European market.  Many 'green' plans were expedited.  So I think you have it quite wrong here.  

[Contrarian333]

No, the loss was due to non cash accruals.  Absent those accruals it was a profitable Q4.  Free cash flow was good.

[rkhosla]

Well it was lower than expected due to continued (and possibly intentional) poor sales and resultant very significant inventory build....  

[Ernieandbert]

Revaluation of allowances for expected credit losses 8 (49.4)  - I/S line item with Notes 8 and 11 Non-cash Expense.  Related to no longer accruing interest (8%) on the receivables owed to S from Energas which was replaced by the Cobalt Swap from GNC (a far better credit than Energas) to S.   Dig in there Stratochief.  I would agree though that S used to trade at a way