The Globe and Mail reports in its Saturday, April 4, edition that Chemtrade Logistics Income Fund ($4.24) announced that it has suspended its 2020 earnings guidance due to "the general economic uncertainty resulting from the COVID-19 pandemic." The Globe's Brenda Bouw writes that chief executive officer Mark Davis says in a note: "The global economy has become increasingly uncertain, with reduced visibility into the future. As a result, we proactively reduced our monthly distribution rate and took other steps to ensure financial flexibility during this time. We also indicated that the assumptions underlying our guidance were at risk based on the duration of this uncertainty. It has become apparent that this uncertainty will continue for some time. Accordingly, it is now prudent to suspend our previously issued 2020 guidance."
Mr. Davis said the company's first quarter operations "were not materially affected by COVID-19." The units could be had for $11.03 on Jan. 23 when The Globe reported that Desjardins Securities analyst David Newman had cut Chemtrade Logistics to "hold" from "buy." He cut his unit target to $11.50 from $12. Chemtrade units were then worth $10.96.
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