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Michele Robitaille Versacold Corp ICE.UN-T DON'T BUY Oct 14, 2005

Payout ratio is at an unsustainable high level. Debt leveles are quite high. Putting out slightly aggressive growth forcasts and are having trouble meeting them.

Michele Robitaille

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$8.150

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BUY

Cold storage is a growing area. Getting outsourcing contracts from some big companies. Stable.

WEAK BUY

Has had a nice run, probably from money leaving Atlas Cold Storage. Fundamentals are OK.

DON'T BUY

In a turn around situation. With the uncertainty with Kraft, doesn't expect much price appreciation. Expanding their Alberta facilities. Paying out a relatively high payout ratio by relatively high debt levels. Wait for some show of strength before buying.

DON'T BUY

Felt that the risk/reward focus had shifted, so sold their holdings. 4th quarter results just issued were relatively flat. Managed to bring their payout ratio under 100%, but just barely at 97%. Debt is creeping up. Haven't been able to realize on their growth forcasts.

DON'T BUY

Upgrading/expansion of facilities in Alberta. Have never managed to achieve the growth prospects they set out in their prospectus and when they did their US acquisition. Will continue to have operational challenges in the near term and won't be able to bring their payout ratio below 100%.

DON'T BUY

The cold storage business is a relatively thin margin business. What he has seen through the years is that operating costs get magnified by balance sheet leverage. Not comfortable with this.

DON'T BUY

They do not own Versacold Income Fund because of its balance sheet. Watch the debt load like a hawk.

DON'T BUY

Versacold Income Fund is a name they used to hold in the portfolio but sold it about eighteen months ago. The company has had high payout ratio at 100% or over for the last 3 years. They have had operational issues. Their debt is high. Be cautious with this name.

BUY

Likes the prospects here, but there are definitely bumps along the road coming. Operates 3rd largest public refrigerated warehouse business globally. Good assets. Paying down debt. Some lost business is going to occur in Australia, but management is looking to replace.

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Michele Robitaille Versacold Corp ICE.UN-T DON'T BUY Oct 14, 2005

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