# CUS - Canexus Corp.



## beans (Jan 25, 2011)

Do you think the divi is sustainable? What do you think about this company as they bring infrastructure to completion and are putting it into service?
Thoughts or feelings?
Beans


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## Canadian (Sep 19, 2013)

I don't follow much news on this company so I can't comment on specific plans or events. From looking at their financials, it looks like it is starting to turn itself around, but is still paying out way over 100% of its earnings. It looks overvalued right now IMO. It could grow into its dividend and valuation but I'd want to see its financial performance improve more before buying shares.


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## londoncalling (Sep 17, 2011)

Anybody who owns this buying? Anybody think there is value here? Mid term bearish Long term bullish?

Cheers


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## james4beach (Nov 15, 2012)

What a volatile little guy! Within the last few months it's done
- a sharp 20% drop
- a fast 30% rally
- and another 22% drop


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## beans (Jan 25, 2011)

Pretty interesting last week. I'm in wait and see mode again. if it dips closer to 5$ i'll buy back in! I really, really don't think they will have any problem keeping their rail terminal busy! Oil in Alberta is bursting at the seams to get out of the province. Good luck to all.


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## beans (Jan 25, 2011)

AHOY volatility. This last one caught me off guard. Avg in now.


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## trophy_23 (Jan 31, 2014)

Yup woke up to a shocker.... Was in pretty good shape yesterday, today not so much!


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## londoncalling (Sep 17, 2011)

beans said:


> Pretty interesting last week. I'm in wait and see mode again. if it dips closer to 5$ i'll buy back in! I really, really don't think they will have any problem keeping their rail terminal busy! Oil in Alberta is bursting at the seams to get out of the province. Good luck to all.


It's definitely closer to $5 now.


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## beans (Jan 25, 2011)

the captain didnt even get to go down with the ship. though i think they stil have a viable business here, but drama galore


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## Moneytoo (Mar 26, 2014)

Found this thread after reading this article: http://www.fool.ca/2014/04/17/two-beaten-up-stocks-with-the-potential-to-double/

_Here are two stocks I’ve been researching that I think have the potential to double if things go right.

*Canexus*

Shares in Canexus (TSX: CUS) have been among the poorest performing on the Toronto Stock Exchange, falling more than 45% over the past six months. What exactly has gone wrong with this chemical manufacturer?

It partly has to do with the company’s expansion into a business which, on the surface, seems like a huge growth area — transporting crude by rail. Canexus has mostly completed its terminal in Cold Lake, Alberta, and has contracts with Cenovus and both Canadian National Rail and Canadian Pacific Rail*to load oil onto tanker cars. The company has huge hopes for this new business. It estimates that a third of its cash flow in 2015 could come from the oil by rail business, up from just a few percent now.

Unfortunately, this oil by rail terminal has been plagued by delays, cost overruns, and other setbacks. The company has announced that the terminal will be shut down in June for two or three months while work is completed. The last thing investors want to see is another delay, and shares are down accordingly.

Canexus’s main business is chemicals, specifically manufacturing and handling of sodium chlorate and chlor-alkali products for the pulp and paper industry. The company has several plants in Canada and two in Brazil, with the Brazilian plants enjoying long-term contracts with large Brazilian companies.

Things aren’t running quite so smoothly for the company’s Canadian plants. Mostly Canexus is suffering from an oversupply issue in the chlor-alkali part of the business. Prices remain weak as demand just hasn’t been up to expectations.

All this has led to a stock that currently yields more than 11%. While the company continues to say the dividend is safe, the market is sending a different message. Investors shouldn’t be surprised if the company cuts the dividend. It’s certainly priced into the stock._

It's $4.90 now, sounds tempting...


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## al42 (Mar 5, 2011)

And here's something from Seeking Alpha.

http://seekingalpha.com/article/214...eir-dividend?isDirectRoadblock=false&uprof=45


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## doctrine (Sep 30, 2011)

I disagree entirely. CUS is not the bargain you might think despite the 45% stock price drop. They still trade at 22 times 2012 net earnings, which was before the problems arose. And the P/B ratio is 2.6:1, certainly not low, and it's only that good because of their massive equity issue. Had they not issued shares ($150M worth vs $870 market cap), they probably would have had to cut the dividend by now. Perhaps they'll turn it around in the next year and everything will work out, but you're not getting a dollar for 50 cents here. They only had a small loss last quarter, you think they'd consider suspending the dividend for a year until the worst is behind them rather than continuing to dilute everyone and borrowing to pay a dividend.


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## Moneytoo (Mar 26, 2014)

doctrine said:


> I disagree entirely. CUS is not the bargain you might think despite the 45% stock price drop.


Yeah, looks like I should stop looking for bargains - nothing is as good as it seems...


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## londoncalling (Sep 17, 2011)

More bad news for CUS.
Cost over runs and more debt

http://web.tmxmoney.com/article.php?newsid=68784566&qm_symbol=CUS:TSX
http://web.tmxmoney.com/article.php?newsid=68390788&qm_symbol=CUS:TSX

Down 7% today. Considering putting in a stink bid


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