Q: Hi,
Care to comment on RBC's downgrade of BIN? One of their main key points was BIN's significant footprint in energy producing locales and they feel that BIN could experience pricing and volume pressures as crude prices impact regional GDP. In your last response to a question on BIN you said,"We added it to the portfolios largely because of its leverage to lower oil prices, its US revenue (60%) and its largely recession-proof business." Do you think RBC's concerns about lower crude affecting pricing trump the benefits of cheaper transport costs? It would appear the market does, BIN down 5% today after not much volatility lately.
thanks.
Care to comment on RBC's downgrade of BIN? One of their main key points was BIN's significant footprint in energy producing locales and they feel that BIN could experience pricing and volume pressures as crude prices impact regional GDP. In your last response to a question on BIN you said,"We added it to the portfolios largely because of its leverage to lower oil prices, its US revenue (60%) and its largely recession-proof business." Do you think RBC's concerns about lower crude affecting pricing trump the benefits of cheaper transport costs? It would appear the market does, BIN down 5% today after not much volatility lately.
thanks.