Last night from Michael Decter. GLTA

Canexus Corporation (CUS TSX) ($8.35) $938mln Market Cap, 7.1 percent Yield, 60 percent payout: Growth coming from key terminalling oil business!
Chemical company for pulp & water treatment (6 low-cost plants). Now getting into oil & oil sands terminalling & transportation business. Strong growth to come with $85M in capex spend to add $40-60M in cash flow to ~$147M base. Terminalling business to become very meaningful could add $3 to NAV according to some sell-side analyst: grown to 35,000 Bbls/d and to 100,000-150,000 Bbls/d by the end of 2013 with pipeline connectivity.

 

2013-01-02 TOP PICK Michael Decter

Own a number of chemical plants and he thinks the current share price is more than covered by the plants, which have good upside. The real gem is the work they are doing in the terminaling business. They are going to be taking increasing volumes of oil and putting them from pipelines in Western Canada onto rail cars. Expect they will add $3 a unit of NAV as the business matures. 7.1% yield.


Price:
$8.640
Subject:
CANADIAN LARGE
Bias:
CAUTIOUS
Owned:
Yes