Superior Plus Corp

SPB-T

Analysis and Opinions about SPB-T

Signal
Opinion
Expert
PAST TOP PICK
PAST TOP PICK
April 22, 2020
(A Top Pick Apr 25/19, Down 20%) He still owns this and added during March. He likes their US propane distribution system and acquisitions into the US northeast. They worked hard to sell their chemical business, but were not able to get the price they wanted. People need propane, so he sees this as an essential business. This is a good time to buy.
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(A Top Pick Apr 25/19, Down 20%) He still owns this and added during March. He likes their US propane distribution system and acquisitions into the US northeast. They worked hard to sell their chemical business, but were not able to get the price they wanted. People need propane, so he sees this as an essential business. This is a good time to buy.
PAST TOP PICK
PAST TOP PICK
February 28, 2020
(A Top Pick Apr 11/19, Down 11%) He still likes this. He bought when it yielded over 7%. The unique thing that happened was the announcement of the sale of their chemical business. They sold out of their position around $13.50 and took profit. When it was later announced the sale was not going ahead, the share prices dropped. Now with the recent sell off in the general market he has been back in buying. With a 6-7% dividend yield it is attractive.
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Superior Plus Corp (SPB-T)
February 28, 2020
(A Top Pick Apr 11/19, Down 11%) He still likes this. He bought when it yielded over 7%. The unique thing that happened was the announcement of the sale of their chemical business. They sold out of their position around $13.50 and took profit. When it was later announced the sale was not going ahead, the share prices dropped. Now with the recent sell off in the general market he has been back in buying. With a 6-7% dividend yield it is attractive.
TOP PICK
TOP PICK
February 19, 2020
An income name that pays 6.1% that's sustainable and growing. He likes the fundamentals. (Analysts’ price target is $14.60)
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Superior Plus Corp (SPB-T)
February 19, 2020
An income name that pays 6.1% that's sustainable and growing. He likes the fundamentals. (Analysts’ price target is $14.60)
BUY
BUY
January 29, 2020
Backed out of a deal? They announced 3 months ago they wanted to sell their European chemical business. When no material offers came then they backed out. They have a lot of debt they were planning to down following the failed divestiture. They have re-instated the DRIP program, which is dilutive to holders he adds. He still owns it and still likes their yield. A stable propane business with good margins. A good buy here. Yield 6.2%
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Superior Plus Corp (SPB-T)
January 29, 2020
Backed out of a deal? They announced 3 months ago they wanted to sell their European chemical business. When no material offers came then they backed out. They have a lot of debt they were planning to down following the failed divestiture. They have re-instated the DRIP program, which is dilutive to holders he adds. He still owns it and still likes their yield. A stable propane business with good margins. A good buy here. Yield 6.2%
BUY
BUY
January 21, 2020
As a trade, you can play it here, buy now. Rangebound, $14 is the upper range.
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Superior Plus Corp (SPB-T)
January 21, 2020
As a trade, you can play it here, buy now. Rangebound, $14 is the upper range.
TOP PICK
TOP PICK
December 13, 2019
New highs. Valuations are high in the market, and it's hard to get good yield in a bond portfolio. It's not expensive with a good price-earning ratio with a dividend. It's a propane franchise, and it's probably undervalued. A good roll-up story going forward. (Analysts’ price target is $14.95)
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Superior Plus Corp (SPB-T)
December 13, 2019
New highs. Valuations are high in the market, and it's hard to get good yield in a bond portfolio. It's not expensive with a good price-earning ratio with a dividend. It's a propane franchise, and it's probably undervalued. A good roll-up story going forward. (Analysts’ price target is $14.95)
PARTIAL SELL
PARTIAL SELL
November 19, 2019
Has support at $12 and resistance around $13. It will be tough to rise above $13. Sell part or all now.
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Superior Plus Corp (SPB-T)
November 19, 2019
Has support at $12 and resistance around $13. It will be tough to rise above $13. Sell part or all now.
DON'T BUY
DON'T BUY
September 10, 2019
He owns the bonds, but not the stock. A low-growth business, hauling around petrochemical products. Stable, though and a safe dividend. Little capital appreciation here.
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Superior Plus Corp (SPB-T)
September 10, 2019
He owns the bonds, but not the stock. A low-growth business, hauling around petrochemical products. Stable, though and a safe dividend. Little capital appreciation here.
HOLD
HOLD
July 12, 2019
He owns the bonds and convertible debentures which pay an attractive 6%. Doesn't own the stocks. SPB will report a good Q2 after fixing its problems. It's returning to its 2015 levels and approaching full value. He has a $14 stock target.
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He owns the bonds and convertible debentures which pay an attractive 6%. Doesn't own the stocks. SPB will report a good Q2 after fixing its problems. It's returning to its 2015 levels and approaching full value. He has a $14 stock target.
DON'T BUY
DON'T BUY
April 29, 2019
Pays a 6.1% dividend. The payout is 40%. Sales were up 5% last quarter, but earnings were down 44%, an 11% negative surprise, and earnings estimates have been chopped 18% in the last 90 days. The coming quarter is expected to see a 30% rebound in earnings. Earnings are expected to jump 70% in the coming year. Their 11% ROE is reasonable. But this ranks low in his rankings.
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Pays a 6.1% dividend. The payout is 40%. Sales were up 5% last quarter, but earnings were down 44%, an 11% negative surprise, and earnings estimates have been chopped 18% in the last 90 days. The coming quarter is expected to see a 30% rebound in earnings. Earnings are expected to jump 70% in the coming year. Their 11% ROE is reasonable. But this ranks low in his rankings.
TOP PICK
TOP PICK
April 25, 2019
Good job in acquiring propane distribution companies in US, plus growing their retail distribution. Inexpensive multiple. Could comfortably move into the $13-14 range. Attractive level. Yield is 6.17%. (Analysts’ price target is $14.38)
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Good job in acquiring propane distribution companies in US, plus growing their retail distribution. Inexpensive multiple. Could comfortably move into the $13-14 range. Attractive level. Yield is 6.17%. (Analysts’ price target is $14.38)
TOP PICK
TOP PICK
April 11, 2019
It is a play on their growth in the propane business in the northeast. The energy part of their business is about 80% and is the focus. They did a good job with a few acquisitions. The market took it too low. They pay out only half of their earnings. Retail distribution is much better the wholesale. It could move to $13-$14. (Analysts’ price target is $14.39)
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It is a play on their growth in the propane business in the northeast. The energy part of their business is about 80% and is the focus. They did a good job with a few acquisitions. The market took it too low. They pay out only half of their earnings. Retail distribution is much better the wholesale. It could move to $13-$14. (Analysts’ price target is $14.39)
BUY
BUY
August 21, 2018

A bond proxy. From 2016 to early-2017 it had an uptrend, then a pullback. This year, the uptrend has resumed. He likes the chart--it's currently on the upside. Also pays a decent dividend. Let's see if it tests upside resistance at $14.

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A bond proxy. From 2016 to early-2017 it had an uptrend, then a pullback. This year, the uptrend has resumed. He likes the chart--it's currently on the upside. Also pays a decent dividend. Let's see if it tests upside resistance at $14.

COMMENT
COMMENT
May 10, 2018

There is good support. It looks good here. But it has to cross the $13.40 level to show him that is a buy. (Analysts’ price target is $14.56)

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There is good support. It looks good here. But it has to cross the $13.40 level to show him that is a buy. (Analysts’ price target is $14.56)

BUY
BUY
May 3, 2018

This trades a 15.5 times earnings vs peers trading at 17 times. He likes it. Distributions are safe. A play on a slightly better economy. 66% energy, 33% specialty chemicals. The balance sheet is a little stretched. A name you can buy for risk-adjusted accounts. Not a blue chip.

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This trades a 15.5 times earnings vs peers trading at 17 times. He likes it. Distributions are safe. A play on a slightly better economy. 66% energy, 33% specialty chemicals. The balance sheet is a little stretched. A name you can buy for risk-adjusted accounts. Not a blue chip.

HOLD
HOLD
April 12, 2018

This did meet his criteria. Continue to collect the dividends.

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This did meet his criteria. Continue to collect the dividends.

COMMENT
COMMENT
October 3, 2017

This was a pure propane business, and then went into building products, pulp chemicals, and none of those worked out very well. The history of expanding its product line is not a great one. However, this has been a strong dividend payer for a long time. Doesn’t think it has tremendous growth potential and that their propane business is always going to be a kind of “on the margin” type of business. You own this for the dividend yield of 5.7%, not the growth.

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This was a pure propane business, and then went into building products, pulp chemicals, and none of those worked out very well. The history of expanding its product line is not a great one. However, this has been a strong dividend payer for a long time. Doesn’t think it has tremendous growth potential and that their propane business is always going to be a kind of “on the margin” type of business. You own this for the dividend yield of 5.7%, not the growth.

COMMENT
COMMENT
September 28, 2017

This had a very big move today. They got approval to buy CanWest, which he sees as double digit accretive. The balance sheet is getting better. He models 15% EPS growth and 5% cash flow per share growth. A 61% payout ratio giving you a 6%+ dividend to wait. Another good name that is coming alive.

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Superior Plus Corp (SPB-T)
September 28, 2017

This had a very big move today. They got approval to buy CanWest, which he sees as double digit accretive. The balance sheet is getting better. He models 15% EPS growth and 5% cash flow per share growth. A 61% payout ratio giving you a 6%+ dividend to wait. Another good name that is coming alive.

BUY
BUY
September 7, 2017

The largest propane distributor in Canada. They sold their construction division. He likes this company and if it is a colder winter it will do even better. It is a well run company.

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Superior Plus Corp (SPB-T)
September 7, 2017

The largest propane distributor in Canada. They sold their construction division. He likes this company and if it is a colder winter it will do even better. It is a well run company.

WEAK BUY
WEAK BUY
August 23, 2017

It has come off, like the others. It could do better as the year goes on.

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It has come off, like the others. It could do better as the year goes on.

COMMENT
COMMENT
July 28, 2017

They just had a solid quarter in all segments, and upped their guidance a percent higher than the midpoint for 2016. He is modelling cash flow growth at 11% from 2016 to 2018, compounded annually. 61% payout ratio of cash flow. The generous dividend of 6% looks safe. Their balance sheet might be a little more levered than he would like. This is probably an opportunity.

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They just had a solid quarter in all segments, and upped their guidance a percent higher than the midpoint for 2016. He is modelling cash flow growth at 11% from 2016 to 2018, compounded annually. 61% payout ratio of cash flow. The generous dividend of 6% looks safe. Their balance sheet might be a little more levered than he would like. This is probably an opportunity.

COMMENT
COMMENT
June 28, 2017

Has a very small position in this. Great yield of 6%. The balance sheet is not a problem. Valuation is fine at 10X EBITDA. Missed on a recent quarter which is why the price momentum has rolled off. Probably not a terrible stock to own here.

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Has a very small position in this. Great yield of 6%. The balance sheet is not a problem. Valuation is fine at 10X EBITDA. Missed on a recent quarter which is why the price momentum has rolled off. Probably not a terrible stock to own here.

COMMENT
COMMENT
January 20, 2017

Has a propane division as well as heating oil in the US, as well as some chemicals. Sold their US construction distribution business, and the balance sheet is better because of that. With a colder weather in Western Canada, he expects them to have good results. Also, expects them to raise their dividend over time. Dividend yield of 5.7%.

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Superior Plus Corp (SPB-T)
January 20, 2017

Has a propane division as well as heating oil in the US, as well as some chemicals. Sold their US construction distribution business, and the balance sheet is better because of that. With a colder weather in Western Canada, he expects them to have good results. Also, expects them to raise their dividend over time. Dividend yield of 5.7%.

HOLD
HOLD
July 27, 2016

(Market Call Minute.) Wouldn’t chase this one too much.

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(Market Call Minute.) Wouldn’t chase this one too much.

BUY
BUY
June 17, 2016

50% energy services, 35% chemical and 16% building. He likes the company. It has a 71% payout ratio, so the dividend should be pretty safe. They are trying to acquire Canexus (CUS-T) which would make them a more formidable player in the chemical space. Trading in line with its peers, but is a lot cheaper than its energy services peers. Have done a really good job of cost-cutting.

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50% energy services, 35% chemical and 16% building. He likes the company. It has a 71% payout ratio, so the dividend should be pretty safe. They are trying to acquire Canexus (CUS-T) which would make them a more formidable player in the chemical space. Trading in line with its peers, but is a lot cheaper than its energy services peers. Have done a really good job of cost-cutting.

BUY WEAKNESS
BUY WEAKNESS
June 15, 2016

Acquiring all of Canexus (CUS-T) assets. The deal has been stretching out forever. There are cost synergies. Anything uncertain casts a pall over stocks for a while. The decision has been delayed until June 29, and they are either going to get approval or divest one of their existing plants. Also, propane prices are a little better and should perk up some. Not a bad Buy under $11.

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Acquiring all of Canexus (CUS-T) assets. The deal has been stretching out forever. There are cost synergies. Anything uncertain casts a pall over stocks for a while. The decision has been delayed until June 29, and they are either going to get approval or divest one of their existing plants. Also, propane prices are a little better and should perk up some. Not a bad Buy under $11.

COMMENT
COMMENT
May 31, 2016

3 different businesses. 1) Propane distribution, mainly out of the US, 2) chemicals and 3) a construction products division. The construction products division has done very well and he thinks they will eventually divest this. Propane distribution is very steady. Chemicals can be up and down depending on what happens in the oil/gas markets. The only thing you have to worry about is whether they will be successful or not in acquiring Canexus (CUS-T). A good place to be and doesn’t think you will get too much interest rate sensitivity on this.

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3 different businesses. 1) Propane distribution, mainly out of the US, 2) chemicals and 3) a construction products division. The construction products division has done very well and he thinks they will eventually divest this. Propane distribution is very steady. Chemicals can be up and down depending on what happens in the oil/gas markets. The only thing you have to worry about is whether they will be successful or not in acquiring Canexus (CUS-T). A good place to be and doesn’t think you will get too much interest rate sensitivity on this.

DON'T BUY
DON'T BUY
May 20, 2016

(Market Call Minute.) Not his top pick, and he would be adding into other areas instead.

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(Market Call Minute.) Not his top pick, and he would be adding into other areas instead.

COMMENT
COMMENT
May 10, 2016

Had probably been the single best company in Canada 15 years ago in terms of monopoly franchise and what they did. Then they bought other diversified businesses which collapsed and had to restructure. It has now been cleaned up and is on his list of companies that he would probably like at the right price. However, a lot of the move will probably be geared to the construction market in the US, which might or might not happen. This is being fixed, but you still have this propane monopoly. The 16% dividend really looks secure.

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Had probably been the single best company in Canada 15 years ago in terms of monopoly franchise and what they did. Then they bought other diversified businesses which collapsed and had to restructure. It has now been cleaned up and is on his list of companies that he would probably like at the right price. However, a lot of the move will probably be geared to the construction market in the US, which might or might not happen. This is being fixed, but you still have this propane monopoly. The 16% dividend really looks secure.

HOLD
HOLD
May 4, 2016

(Market Call Minute.) This is in 3 different businesses, propane, construction products and energy management. Has had a nice run up.

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(Market Call Minute.) This is in 3 different businesses, propane, construction products and energy management. Has had a nice run up.

BUY
BUY
May 4, 2016

(Market Call Minute) Lots of moving parts, but they got pinched by lower propane prices because of a warmer winter and this won’t repeat itself. Their recent acquisition is accretive to them. It has more to go.

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(Market Call Minute) Lots of moving parts, but they got pinched by lower propane prices because of a warmer winter and this won’t repeat itself. Their recent acquisition is accretive to them. It has more to go.

COMMENT
COMMENT
April 18, 2016

Wouldn’t qualify this as a defensive. The chart shows 2 higher lows in February and April, which is pretty good. There may be a little bit of resistance at this point. From a technical perspective, it is still a little bearish, so he would be careful. Make sure the $9.80 is not breached.

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Wouldn’t qualify this as a defensive. The chart shows 2 higher lows in February and April, which is pretty good. There may be a little bit of resistance at this point. From a technical perspective, it is still a little bearish, so he would be careful. Make sure the $9.80 is not breached.

BUY
BUY
March 3, 2016

Very cheap at 11X earnings with an 8% dividend yield. In the process of acquiring Canexus (CUS-T), but markets are giving no credit for this. There are regulatory risks that the deal gets turned down, but there should still be some premium priced into this that maybe it will go through. If it goes through, there could be a very nice expansion in multiples because they are going to be generating a lot of cash flow. Since this valuation is not being given any credit, you have upside opportunity, but very limited downside risk. It is also a utility giving stability. The dividend should be good.

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Very cheap at 11X earnings with an 8% dividend yield. In the process of acquiring Canexus (CUS-T), but markets are giving no credit for this. There are regulatory risks that the deal gets turned down, but there should still be some premium priced into this that maybe it will go through. If it goes through, there could be a very nice expansion in multiples because they are going to be generating a lot of cash flow. Since this valuation is not being given any credit, you have upside opportunity, but very limited downside risk. It is also a utility giving stability. The dividend should be good.

COMMENT
COMMENT
November 24, 2015

Has a pretty healthy PE ratio. Dividend yield of 7%+ and ranks pretty well on his metrics. However, analysts have been bringing their estimates down recently, so he would be careful in the short term.

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Superior Plus Corp (SPB-T)
November 24, 2015

Has a pretty healthy PE ratio. Dividend yield of 7%+ and ranks pretty well on his metrics. However, analysts have been bringing their estimates down recently, so he would be careful in the short term.

COMMENT
COMMENT
November 5, 2015

They were disappointing on their latest earnings. Just lowered their cash flow guidance, but cited a recent equity raise that they did to fund their Canexus (CUS-T) merger and IT expenses next year. The problem with them not growing as much means that their balance sheet is a little more levered than you want it to be if they get approval for their merger. The good news is that Canexus will be very accretive for them, and will really strengthen their chemicals platform. They have a lot of their operations in the US. In 2016 all their US hedges roll off, which will be a bit of an FX tailwind. Likes the name.

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Superior Plus Corp (SPB-T)
November 5, 2015

They were disappointing on their latest earnings. Just lowered their cash flow guidance, but cited a recent equity raise that they did to fund their Canexus (CUS-T) merger and IT expenses next year. The problem with them not growing as much means that their balance sheet is a little more levered than you want it to be if they get approval for their merger. The good news is that Canexus will be very accretive for them, and will really strengthen their chemicals platform. They have a lot of their operations in the US. In 2016 all their US hedges roll off, which will be a bit of an FX tailwind. Likes the name.

COMMENT
COMMENT
November 3, 2015

Reported quarterly results that were a little bit messy. It certainly disappointed the street. Recently announced the acquisition of Canexus (CUS-T), and he thinks the outcome of the regulatory review will be in the middle of next year. That should provide some clarity for the stock. Sold off because the operational results were not very good. It is also an entity that is highly leveraged. This is probably a victim of a little bit of tax loss selling. Thinks the intrinsic value of the entity as a whole is far greater than $10, especially if they sell their construction business.

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Superior Plus Corp (SPB-T)
November 3, 2015

Reported quarterly results that were a little bit messy. It certainly disappointed the street. Recently announced the acquisition of Canexus (CUS-T), and he thinks the outcome of the regulatory review will be in the middle of next year. That should provide some clarity for the stock. Sold off because the operational results were not very good. It is also an entity that is highly leveraged. This is probably a victim of a little bit of tax loss selling. Thinks the intrinsic value of the entity as a whole is far greater than $10, especially if they sell their construction business.

COMMENT
COMMENT
October 30, 2015

Have made an offer to buy Canexus (CUS-T), which might run into a few regulatory hurdles. If they do manage to get the deal through, it is going to be very accretive. Have 2 other businesses, propane distribution and a consumer’s products division, (drywall and sheet wall that they sell.) The propane distribution is excessively stable. The dividend yield of 6.9% is very safe.

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Superior Plus Corp (SPB-T)
October 30, 2015

Have made an offer to buy Canexus (CUS-T), which might run into a few regulatory hurdles. If they do manage to get the deal through, it is going to be very accretive. Have 2 other businesses, propane distribution and a consumer’s products division, (drywall and sheet wall that they sell.) The propane distribution is excessively stable. The dividend yield of 6.9% is very safe.

WATCH
WATCH
August 21, 2015

There are a couple of places where we could’ve hung our hat. It looks like about a week ago, where it bounced right up to that, but then was repelled back down. Watch the level at around $10.70 to see if it will hold there, and that would be a sort of place to hang your hat on.

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There are a couple of places where we could’ve hung our hat. It looks like about a week ago, where it bounced right up to that, but then was repelled back down. Watch the level at around $10.70 to see if it will hold there, and that would be a sort of place to hang your hat on.

WAIT
WAIT
May 5, 2015

Chart shows a gradual upward channel from 2013, and is now starting to turn down a little. This has the same general tendencies as the overall market. He wouldn’t be buying at this time. Wait until the fall.

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Chart shows a gradual upward channel from 2013, and is now starting to turn down a little. This has the same general tendencies as the overall market. He wouldn’t be buying at this time. Wait until the fall.

DON'T BUY
DON'T BUY
December 8, 2014

He sold a couple of months ago. He thinks there are better places to go. The dividend is okay, though. There is a fight with CRA and if they lose it could be negative for the stock.

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Superior Plus Corp (SPB-T)
December 8, 2014

He sold a couple of months ago. He thinks there are better places to go. The dividend is okay, though. There is a fight with CRA and if they lose it could be negative for the stock.