tag:blogger.com,1999:blog-2512467521803558513.post5893154461121184075..comments2023-10-12T02:38:15.344-07:00Comments on Investing in Canada: Best Investment Blog: Westshore Terminals Income Fund (WTE.UN) Profits to Soar over the next 3 yearsSmac20http://www.blogger.com/profile/01989834781180618272noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2512467521803558513.post-55044768987851544362009-09-30T19:15:32.345-07:002009-09-30T19:15:32.345-07:00WTE.UN Units Likely to Be Under Pressure in Near T...WTE.UN Units Likely to Be Under Pressure in Near Term<br /><br />RBC CM expects WTE units will be under pressure over the next six months as the company enters into negotiations surrounding the Elkview contract. Other factors likely to weigh on performance are recent insider selling and potential contract risk associated with WTE’s second contract, the Port Services Agreement. RBC CM’ recommendation goes to Sector Perform (from Outperform); target remains unchanged at $15. The Elkview contract, which RBC CM estimates represents roughly 5MMt (of WTE’s 20MMt volumes in 2009E), comes up for renewal on March 31, 2010. RBC CM expects that Teck Coal will negotiate aggressively to lower the loading rate – similar to the hard-line approach it took with CP. RBC CM has seen three WTE insiders significantly selling down their positions over the past five months. The most significant has been Jim Pattison, whose total position has been reduced from 17.4MM units (23.4% ofthe Fund) in May 2009 to 14.5MM units (or 19.6% of the Fund), as of September 25, 2009. RBC CM continues to view WTE as an attractive asset with a solid competitive position and upside potential from a possible take-out.tsxcommentary.comhttp://www.tsxcommentary.com/2009/westshore-terminals-income-fund/wte-un-units-likely-to-be-under-pressure-in-near-term/noreply@blogger.com