Like others
Conifex to suspend Fort St. James, Mackenzie sawmills
2019-05-01 19:11 ET - News Release
Actually Ken Shields is a pretty smart person. He was the Former head of Raymond James who is still invested in CFF. Ken comes from Prince George BC Known as the Spruce Capital of the world has always been a forest industry community.
Ken cut his eye teeth in the business world with his familly being very sucessful business people in both the auto and hardware and lumber business. The shields familly Auto dealership was located on 6th and George street. His uncle owened the building supplies in Southern BC. Like the Moffats the Shields were stalwarts in the prince George community. Having spent my younger years in Prince from the time it had a population of 12 to 20k. Bright, intelligent and ambitious young people were regognized in many circled of conversation as a pride of the community. Ken happened to be one of them.
He is no dummie. He has taken a single mill, a bankrupt operation with a beetle kill fiber supply and expanded it to five. Of which 2 are in the USA. Heavy debt ? yes. But still profitable and R/G last 4 q was up 38%. Presently CFF is trading at only 27% of it's B/V That is very undervalued.
Ken cannot control the price of lumber or the burden Canadian government places on the corporation. Nor can he direct investors not to sell but buy to keep share price higher. He can only manage the company within the parameters given.
So far he seems to be doing ok.
A lot of armchair analysts criticsize but themselves have never been in a business of their own. Nor were ever in the forest industry which is subject to very cyclical highs and low swings. Unlike consumer staples like grocery stors where customers are forced to buy for the sole purpose of survival.
Ms. Sandy Ferguson reports
CONIFEX TEMPORARILY CURTAILING FORT ST. JAMES AND MACKENZIE OPERATIONS IN Q2
Commencing May 6, 2019, Conifex Timber Inc. is temporarily curtailing operations at its Fort St. James, B.C., sawmill for four weeks and its Mackenzie, B.C., sawmill for three weeks, due primarily to continued high log costs and lumber market conditions.
The temporary curtailment is expected to reduce Conifex's B.C. lumber output by approximately 24 million board feet.