Topic: How To Invest

Pat: What do you think about Canexus Corp.? Thanks.

Article Excerpt

Canexus Corp., $7.73, symbol CUS on Toronto (Shares outstanding: 119.3 million; Market cap: $922.2 million; www.canexus.ca), produces sodium-chlorate and chlor-alkali products, largely for the pulp and paper and water-treatment industries. The company’s five plants—four in Canada and one in Brazil—aim to use nearby low-cost electricity and transportation facilities to cut their production and delivery costs. Canexus also provides “transloading” services (transfers of oil and gas by-products, such as butane, from railcars to trucks) to the oil and gas industry from its terminal at Bruderheim, Alberta. Canexus was formerly a division of Nexen Inc. (symbol NXY on Toronto). It began trading as a separate entity, and as an income trust, on August 18, 2005, at $10 per unit. Canexus converted to a conventional corporation in July 2011. In the three months ended September 30, 2011, Canexus’ revenue rose 17.0%, to $139.3 million from $119.0 million a year earlier. Cash flow per share was $0.20 in the latest quarter. A comparative year-earlier figure is not…