Jamie Murray Chemtrade Logistics Income FundCHE.UN.TOTOP PICKJul 28, 2025

Has a diversified mix of chemicals. Its products treat drinking and waste water which makes it lower risk since it sells to municipalities. People need good water. It tends to trade at higher multiples and is starting to be picked up by the rest of Bay Street. Has another good 5 years for its strategy.                                                                                                                                    

Some competition, but its specialty is highly caustic acids really needed for chip manufacturing. Recent runup due to Iran war, as a lot of sources have been cut off. His long-term outlook is favourable. 

Attractive valuation, fairly good discount to peers.

It's hard to read much into trading over the holiday weeks. Everyone's back this week, but just getting into the swing of things. People are rebalancing their portfolios, making changes, doing tax-loss selling. It's generally a time of thinner trading, which exaggerates the trades.

By the end of the month, you should get a better read on what's going on.

CHE.UN is getting its act together and is up 35% this year. It is now 14X earnings, with a yield of 4.7%. It has cut its dividend in the past and it is a cyclical company. Historically, it has not done well, but it has fixed some cost issues and prices for its products have improved. Very strong growth is now forecast for 2026. Cash flow is good. It looks better than it has for some time, but there are risks here. Debt is high, and in a cyclical downturn investors may sell it off. But today it looks decent.
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He entered low and paid a high dividend. Would still but it today.

Likes the chart for its step pattern--a rally, then holds, then rallies, holds, rallies. Now, it should hold around $13 and could hold there long-term.

Seemed to beat expectations when it just reported. Trading off a bit today. Really outperformed this year in terms of guidance. However, has had tailwinds from commodities and those can reverse. On his radar, will do some work on it. Be cautious after the run it's had.

Chemtrade is looking interesting with good momentum and growing off of a low multiple at 9X forward earnings alongside a 5% yield. The company reported a solid earnings report recently and EPS saw a big beat at $0.44 vs $0.30 expected. They are putting together a good string of 'beat and raise' results. The company also has a share repuchase active for potentially 10% of shares. The company reports tomorrow (the 11th) so we might just wait for results at this stage but CHE is doing a lot of the right things currently.
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Chemtrade is looking interesting with good momentum and growing off of a low multiple at 9X forward earnings alongside a 5% yield. The company reported a solid earnings report recently and EPS saw a big beat at $0.44 vs $0.30 expected. They are putting together a good string of 'beat and raise' results. The company also has a share repuchase active for potentially 10% of shares. The company reports tomorrow (the 11th) so we might just wait for results at this stage but CHE is doing a lot of the right things currently.
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Chemtrade is looking interesting with good momentum and growing off of a low multiple at 9X forward earnings alongside a 5% yield. The company reported a solid earnings report recently and EPS saw a big beat at $0.44 vs $0.30 expected. They are putting together a good string of 'beat and raise' results. The company also has a share repuchase active for potentially 10% of shares. The company reports tomorrow (the 11th) so we might just wait for results at this stage but CHE is doing a lot of the right things currently.
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He upgraded it to sector outperform. The valuation looks good and it has a good balance sheet and distribution. He doesn't see a lot of growth beyond 2027.

Fantastic little company, well run, in a good space. YOY return of ~20%, and 3 years of 82%, is pretty decent for a little Canadian stock. Technically, quite good. Hasn't clipped profits yet. Could come back to trendline. Buys more every chance he gets. Small cap, so make sure it's the right weighting in your portfolio.

If you don't own it, take a little snick today of 1-1.5%, and then just wait. Bit volatile.

Likes it. New CEO has done a really good job restructuring. Provides environmental services. Provides chemicals to O&G, water treatment, and food industries. Reduced debt. A good part of the business is economically sensitive. Some investors are concerned about the income trust structure, but management says it's too hard to remove.

Used to own, going to do a deep dive on it.

Was his top pick last November. It will continue to do well. Is selling at 12x PE and little above book value. Pays a generous dividend. Are redeeming their convertible debentures and replace that with less expensive debt. There could be a little dilution. Will continue to hold.