Opinions
Irwin Michael, B.Com, MBA
Sherritt International Corp.
S-T
PAST TOP PICK
Dec 03, 2013
$3.330
Stock price when the opinion was issued
integrated mines
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
DON'T BUY
This is a zero, although not priced there yet. That is where it is going. It has been a lousy company for a long time. Madagascar will prove to be their undoing. They defaulted on their debt in February. Their debt is currently worth 54 cents on the dollar so the stock is worth zero.
integrated mines
RISKY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research
It is certainly not beyond possibility. Bloomberg default ratio is 7.36%, which is very high for that indicator. Cash flow was negative in the last quarter, yet 12-month interest expenses were $36.1M net. With its small size and Cuban and other issues, we are not sure it could raise a lot of money with a dilutive equity issue. Most debt matures in 2026. Certainly any investment here needs to be considered extremely risky.
Unlock Premium - Try 5i Free
integrated mines
(Top Pick Nov 16/12, Down 25.74%) It is a sum of the parts story. It is the Madagascar project and people are looking at the nickel price. If it stays down a long time a lot of their competitors will shut down. Over 5% dividend. He would like the company to buy back stock.