RE:Upgrade questionRetail price of wood has double since February (look it up, it's everywhere today : 2 X 6 - 8 foot are up 110%) and companies are stocking at today's price.
RBC analysts expect the price to increase as well and to stay high (Hurricanes in certain areas of the States also have an impact on the demand of lumber - it's not something you wish but if hurricanes damage houses, then they must be repaired with wood and so on.
Demand is huge, supply is low. Retails make good margins, but they don't have the biggest bargaining stick here...
RFP is at this levels because of its debt and history of being more sloppy I believe.
But Q2 showed profit, prices of the futures of Lumber being at around 780 $ directly benefit RFP.
At this rythm, this company can become a 10$ USD I believe.
David