Gran Colombia Gold Bonds, Short Term, High Yield, Unique Fixed Income Investment, Yielding 14% YTM

Once in a great while you find or learn something that is so unbelievably good, that you have to hear or read it over and over again, often from different sources or perspectives, before the truth of it actually starts to sink in and really make sense.  Perhaps it’s that initial bewilderment that has served to curb much of any demand from the fixed income markets for this otherwise “golden” opportunity. Fortunately, this is great news for those that eventually arrive at a deeper understanding of why these Gran Colombia Gold bonds are so darn good… and it is why these bonds are well deserving of overweighting in our high performing FX2 fixed income portfolios.

Hurricane Dorian Hits Canada, Leaves Thousands in Darkness

After causing mass damages in the Bahamas, as well as North Carolina, Hurricane Dorian made landfall Saturday afternoon in Halifax, Nova Scotia. It uprooted trees, blew off roofs and disrupted electricity supply, leaving several in darkness. Hurricane Dorian reached the extreme east of Canada with strong winds on Sunday and left hundreds of thousands of people without power supply.

Theratechnologies Bonds, Short Term, High Yield, Fixed Income Investment, Yielding 8% YTM

This week, Durig Capital looks to a Canadian issuer, a specialty pharmaceutical company that is successfully treating long-term HIV patients with its unique medicines so that patients have the opportunity to have a better quality of life. Theratechnologies (TSX:TH) has two landmark drugs, Trogarzo™ and EGRIFTA™ specifically developed to help HIV patients. The company has reported its second quarter results (for the three months ending May 31, 2019) and continues to see outstanding growth over its product lines.

Gran Colombia Gold Bonds or “Gold Notes”, Short Term, High Yield, Fixed Income Investment, Yielding 8% YTM

Beyond Belief… this may be the most fascinating debt instrument we have ever reviewed.

Rising with the price of gold, the cash flow and yield of Gran Colombia Gold’s senior secured “Gold Notes” appears to be headed straight into the land of unbelief.  Perhaps what we see here is either wrong… or something in this picture seems to have quietly escaped the attention or the view of most other investors in the high yield bond market.  Granted, this is not a straightforward and easily understood issue because of the quarterly interest boost linked to its amortized quarterly redemption of principle when the price of gold is higher 1250 per ounce.  However, it is precisely this “hard to be understood” feature that is driving its current push into the land of dreams.

¡Arriba! Mexico First to Approve USMCA with the Potential of a Win for all 3 Countries

One down, two to go.  On Wednesday, the Mexican Senate passed the United States-Mexico-Canada Agreement, becoming the first nation, of three, to ratify the new trade deal.  The agreement was met with little resistance, relative speed, and enthusiastic celebration from the Mexican government upon ratification.  That was the easy part.  The USMCA still faces an uphill battle in Washington, and a race against time in Ottawa.

Trump Lifts Steel & Aluminum Tariffs, Urges Ratification of USMCA

It was good news all around on Friday, as President Trump announced a deal to lift steel and aluminum tariffs on Canada and Mexico.  The tariffs had been a major obstacle to passing the United States-Mexico-Canada-Agreement, which would replace NAFTA.  In fact, Senate Finance Committee Chair Chuck Grassley (R-IA) had warned Trump in April that the deal would be dead unless they were removed.  The U.S. will drop the metals tariffs within two days, and Canada and Mexico will do likewise with their retaliatory tariffs.

International Roundup: Ballots, Bullets, and Bombs

A Golden Opportunity with Monthly Paying “Gold Notes” from Gran Colombia Gold, Over 8% YTM, Mature April 2024

This week, Durig Capital reviews the largest underground gold and silver producer in Colombia.  Gran Colombia Gold has staged an amazing transformation from just a short three years ago, when Durig Capital began to carefully follow this issuer.  After completing a well-timed and skillfully crafted restructure of its balance sheet early in 2018, the company has consistently continued to smash its production targets, and has once again impressed us with its most recent results for the fourth quarter and full-year 2018.

Updated Review of Entrec Corporation, 16% YTM, Maturing June of 2021

This week, Durig Capital reviews a Canadian heavy haul transportation and crane company. Entrec Corporation provides heavy haul transportation and crane solutions to the oil and gas, construction and power generation industries, among others.  Entrec’s most recent results for both its fourth quarter and full year 2018 showcase healthy growth in the company’s U.S. operations. And given the volatility in oil and gas late last year, the company’s results are even more impressive.

Trump’s Harsh Economics for EU, China, Mexico, Canada, El Salvador, Guatemala and Honduras

International Roundup: Runoffs, Recordings, Reshuffles, and Rolling Blackouts

International Roundup: Ardern, Ethiopia, Israel, Trudeau, EU

  • New Zealand is still picking up the pieces after at least 50 people were killed, and another 50 were injured, in Friday’s terror attack, the worst in the country’s history. Prime Minister Jacinda Ardern spent the weekend visiting grieving family members and the Muslim community. The attacks, on two mosques in Christchurch, have also prompted a debate over gun laws. The Police Association has called for a ban on semi-automatic weapons, and the Prime Minister has pledged, “our gun laws will change.”

What Countries are Causing the Global Economic Slowdown?

Maple Water’s Emergence as a Feasible Sugar Alternative Drives Manufacturers to Increase Production Capacity

The maple water market is likely to witness significant growth, with demand likely to surpass 16 million liters in 2018, according to a latest report by Fact.MR. The substantial growth in the market is influenced by rise in the health-conscious population and growing demand for organic and natural food products.

The increasing demand for sugar alternatives and convenience food products in North America is leading to the rise in production and consumption of maple water. Increase in growth and plantation of sugar maple tree across eastern Canada and the northeastern US is also driving maple water consumption in the region.

On account of growing demand for maple water and maple products in North America, the key players in the region are focusing on increasing the production capacity using efficient technologies. This is likely to put downward pressure on the price of maple water as the supply expands. Additionally, maple syrup, a product derived from maple water is witnessing increasing demand from baking and confectionery industries in North America.

International Roundup: Kurds, Canada, Congo, Caracas

International Roundup: Detain, Delay, Defeat, Defect

Will Canada’s Legal Cannabis Trade Take Stocks Higher or Be a Buzzkill?

Go Green with 8.0% YTM from Canadian Solar, Bonds Mature February 2019

This week’s bond review shines a light on the solar industry, focusing on the second largest solar company by revenues. Canadian Solar has experienced outstanding growth over the past few years, with revenues growing by nearly 19% between 2016 and 2017. In addition, the company is projecting revenue growth this year of over 35% over  last year. Growth has been driven by the large demands in China in recent years, but also increased demand in countries such as Brazil, Mexico and India. Canadian Solar’s first quarter results show the company is off to a solid start this year.

 

  • Gross profit in Q1 increased 57% over Q1 2017.

  • Net revenue in Q1 was up an impressive 110.5% from Q1 2017.

  • Operating expenses and general and administrative expenses both decreased year-over-year in Q1.

  • Interest coverage for Q1 was a solid 2.6x.