Topic: How To Invest

Stock Pickers Digest Hotline – Friday, November 16, 2018

Article Excerpt

CHEMTRADE LOGISTICS INCOME FUND, $11.74, symbol CHE.UN on Toronto, is one of the largest removal-service providers for resource firms that create acids and sulphur as by-products. The trust converts (and sells) these substances into useful chemicals such as sulphuric acid. Many of its removal contracts are with oil refineries and base-metal processors. In the quarter ended September 30, 2018, Chemtrade’s revenue rose 4.4%, to $418.2 million from $400.5 million a year earlier. Cash flow per share fell 40.9%, to $0.39 from $0.66. The decline was partly due to maintenance shutdowns at refineries, which resulted in a reduced supply of sulphur. Poor sales of sodium bisulphite also contributed to the weaker cash flow. Chemtrade transitioned to self-marketing of sodium bisulphite last year. However, the company has now decided to return to marketing the chemical through its previous distributor. That should boost its cash flow. Sodium bisulphite is primarily used as a bleaching agent in the pulp and paper industry, and can also be used…

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