The Globe and Mail reports in its Wednesday edition that Raymond James analyst Kurt Molnar, failing to see "simple" solutions to structural concerns about Chinook Energy's near-term state, cut his rating to "underperform" from "market perform." The Globe's David Leeder writes that Mr. Molnar cut his share target to 35 cents from 50 cents. Analysts on average target the shares at 61 cents. Mr. Molnar says in a note: "While Chinook plans to consume their positive working capital over the course of the year, their return on capital is likely to be unattractive in our view. This causes a problem obviously for the equity investor and even raises doubts as to the saleability of the company/assets unless the buyer could sharply reduce cash costs of the Chinook business model. The company notes it has an $8-million bank line but drawings are limited to a max of $2-million without the prior approval of the banks. The exit positive working capital forecast of $2-million as at the end of calendar 2017 leaves little breathing room in the business model unless the larger credit limit is available." The Globe reported on June 7, 2016, that Raymond James hiked Chinook to "market perform" when it was worth 52 cents.