Q: I'm seeing chatter on bulletin boards that CVVY's cashflow will increase dramatically in 2026 once its sulphur hedge comes off at the end of this year. My back of the envelope calculations support this theory. Combining the sulphur theory with increasing third party processing revenue and the potential for higher natural gas prices lead me to take a speculative 1/4 position in this company. Before I possibly take a larger position, I would like your thoughts on the impact of sulphur sales on cashflow in 2026.
5i Research Answer:
We made these comments about a week ago. With no analysts on the company, we can only take the company's word for its forecasts. The long term fixed-priced sulphur contract ends at year end, so the potential is certainly there for improvement. We have no reason to doubt the company, but a lot of factors have to combine to justify the giant move in the stock this year.