While some people are arguing whether what happened to Silicon Valley Bank was a bailout or not, I would like to post a little update on the stocks I follow and the bailouts that some of them have received. 🙂
Goodfood Market Inc. (TSX:FOOD) received its C$10M bailout just recently. They called it debentures, but those who know, know. 😀
I already wrote about this, so no need to repeat myself.
NFI Group Inc. (TSX:NFI) got a C$200M bailout from the Government.
And they need it soooo bad, because
As the Company expects to be unable to comply with certain of its financial covenants under the terms of its credit facilities beginning on July 1, 2023. These events result in a material uncertainty that may cast significant doubt as to the ability of the Company to continue as a going concern…
Source: NFI Q4’2022 Financial Results
Cascades Inc. (TSX:CAS)
Considering the delay in the start-up and the continued inflation, the total project cost is now estimated to be between USD 515 million and USD 525 million.
Their initial estimate was US$380M.
Surprisingly, stock price shot up after releasing year-end financial results.
The good news is that they are about to finish the construction and the project will finally start making money, at least in theory.
The bad news is that they are deeply in debt, and now is not a good time to have lots of debt.
Conifex Timber Inc. (TSX:CFF)
Meh, it’s kind of ok, considering that the power plant was offline for around 6 months.
I still believe that CFF is really undervalued and needs to be sold and done with.
But it seems like either Ken Shields, CEO of Conifex, or one of the major shareholders, who is deep underwater, doesn’t want to sell.
I don’t understand much about forestry or lumber, but CFF can survive on the money generated just by the power plant alone, even with all those shutdowns.
Lumber operations are like a big fat bonus.
Also, it looks like Conifex finally partnered with some shitcoins “miner”:
Greenidge Generation Expands Footprint with New Hosting Services Agreement Using Renewable Energy with Conifex Timber in British Columbia, Canada
This Greenidge Generation (NASDAQ:GREE) seems like it’s going to bankrupt, but what do I understand about “high performance computing”?
For the three months ended December 31, 2022, Greenidge expects to report revenue of approximately $15 million, net loss from continuing operations in a range of approximately $(120) million to approximately $(130) million and Adjusted EBITDA (loss) from continuing operations in a range of approximately $(6) million to approximately $(4) million.
Anyway, whoever it is and whatever they are doing, as long as they are paying for the electricity produced by Conifex, I’m fine with it.
My portfolio is still 50% cash since November 2022, I’m just collecting 3%+ 4%+ interest and some dividends.
So far, it seems like the best strategy, considering that I don’t short stocks or gamble with options.
I was dumb enough (ah, this burning sensation in the pocket) to buy some more shares of CFF and SOT.UN (hoping for big changes, since Armoyan is on the board now) in February just to see how everything keeps melting down after a little bump.
Still wondering where the bottom is. 🙂
And you get a bailout!
Credit Suisse to borrow up to about $54 billion from Swiss National Bank
About Conifex and
useless hash calculationscrypto mining.CFF‘s power plant is providing 3MW of electricity, which results in 3*24*365 = 26.3GWh.
CFF sold 184.6GWh for $23.5 million in 2021 and 109.7GWh for $13.4 million in 2022.
Which gives an average revenue per 1GWh of around C$122k–C$127k.
Let’s round it to C$120k, and since you need cheap electricity for mining, let’s say Conifex sells it for half the price to Greenidge.
So, C$60k*26 = C$1.5m. Nice.
If I didn’t mess up with my calculations, Conifex can potentially make a million and a half every year from Greenidge until it goes bankrupt.
I still have doubts GREE can survive for long.
This is actually funny:
Source: Edge of the Edge