RE:Man,
biggerr wrote: I guess these investors from the W.4th Avenue in Kitsilano didn't expect such a nasty turn of events when they entered the forest business a few years ago. Now they should sell their last remaining mill in Canada and the power station, you can't sit on two chairs at the same time
They're definitely looking to divest the power plant as they need the funds and it's no longer essential to their business. The ideal would be just to get rid of McKenzie compeltely and focus on the Southern US, which I'm sure they're trying to do as quickly as possible to improve liquidity.
I'm sure the news release Conifex put out yesterday is responsible for the selling,but in reality it is not a huge amount of shares being moved around. And really, none of this is really new information. The last MD&A stated they were looking to divest McKenzie assets to provide additional liquitidy to the balance sheet and were expecting lumber prices to slowly rise throughout the last half of 2019 and that is also happening.
Bottom line is that these guys need to sell McKenzie and have lumber prices keep creeping up. Pricing was definitely better for Q3, so hopefully that will stop the bleeding. Scary times for the forest industry in Canada especially.
Anyone with big enough balls to be buying now will probably make a killing if these guys can right the ship and start profiting in the US. It would be nice to get a little more communication from CFF though as to the progress on the power plant sale. To their credit they were very upfront and accurate with the timeliens on the FSJ sale.