Futures gained $71 (no typo) today. At $570 US. $775 CAD. Holy cow.
What a day and long overdue. There is going to be an absurd amount of money to be made in the sector if this holds. We tend to be sad Dickens characters in tattered rags in this industry --
please sir, can I have a 5x valuation multiple?' when the global norm is three times higher?? Wild. The sector will never be non-volatile, but if it can keep this up (supplier discipline, robust demand, attenuated forest productivity due to bugs and conservation, environmental ethos putting concreate and steel in the penalty box) we are in IN THE DAM MONEY!
The status quo if/when it lasts could mean a little less Dickins for lumber -- say the mills get a 10x multiple on current pricing ($300/mfbm margins). Toss in a 12x multiple for power and you got yourself a $17.61 share price for Conifex. I will take a 2100% return on my $0.80 fill today (only 10k in shares but slow and steady right).
By the way -- anyone know how the AGM went? Any emails sent re: questions? The main reason why I have such disdain for the leadership is arrogantly ignore easy relevant questions for significant shareholders. Crickets chirped. By contrast I've reached out with lesser emails to firms of way larger market caps and gotten brillant notes back. CFF is the only one that's blackballed me which is funny given they maybe need the advice. Ok, less form me... I'm the advice from the cheap seats but if they absolutely need to be engaging the likes of Black444 whos going rate has gotta be north of $400/hr but that's money well spent. So odd when the likes of this board are far more capable than the leadership team. Last time that happend to me I made a half mil on Tembec though so I'll take it and run. And I'm using $17/share as illustration.... but it's pretty indicitive of where the turn could take us. Cash is king.