Q: Typical Canada/BC that they pulled approval for Chem trade to produce sulphuric acid right at the time of a major global shortage and when the need for a North American supplier is critical.
Is the 17% drop today about right based on this news? What do you think the chances are this get overturned? I recently bought after looking at the macro situation and need to decide whether to drop and move on or if there is recovery potential. Given that Vancouver and BC is involved this could drag on for years, no?
Is the 17% drop today about right based on this news? What do you think the chances are this get overturned? I recently bought after looking at the macro situation and need to decide whether to drop and move on or if there is recovery potential. Given that Vancouver and BC is involved this could drag on for years, no?
5i Research Answer:
Yes, it is unfortunate news. While the decision to reject the rezoning application for CHE.UN's north Vancouver could be overturned, it could take a while and such decisions in BC are always uncertain. The plant has a permit until 2030 but beyond that the uncertainty now exists. Considering the drop today we would see it as a HOLD. It is now a one-way decision (i.e, it has already been rejected, so a reversal would be positive), but the uncertainty will likely keep CHE buyers at bay, and the stock may not do much for several months.