Q: Do you think Sherritt would be a good investment for refineries and exposure to the possibility of the Cuban economy opening up to foreign investment? Thanks.
Helen
Helen
5i Research Answer:
Sherritt is a small company at $109M market cap, down 43% in a year. It has, frankly, been a bit of a basket case for decades, with the stock at $18 in 2007 and at 27 cents now. Debt is high, and it has lost money in eight of the past nine years. It does have positive cash flow, however. It is expected to lose money in 2024 and break even in 2025. It has about $50M in revenues from Cuba and certainly would be well-positioned to benefit if Cuba business opened up more. But overall, we would consider it too risky for serious investment consideration.