Topic: How To Invest

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

Article Excerpt

Canexus Corp., $7.64, symbol CUS on Toronto (Shares outstanding: 121.0 million; Market cap: $924.4 million; www.canexus.ca), produces sodium-chlorate and chlor-alkali products, largely for the pulp and paper and water-treatment industries. The company’s six plants—four in Canada and two at one site 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 converted its corporate structure and began trading as an income trust, on August 18, 2005, at $10 per unit. Canexus turned itself into a conventional corporation in July 2011. In the three months ended March 31, 2012, Canexus’s revenue rose 18.3%, to $149.0 million from $126.0 million a year earlier. Cash flow per share was $0.23 in the latest quarter. A comparative…