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Conifex Timber Inc T.CFF

Alternate Symbol(s):  CFXTF

Conifex Timber Inc. is a Canada-based forest products company, which operates fiber baskets in North America, northern British Columbia. The Company produces lumber products and renewable energy from its sawmill and bioenergy plant in Mackenzie, British Columbia. Its lumber products are sold in the United States, Canadian and Japanese markets. It also produces bioenergy at its power generation facility at Mackenzie, British Columbia. Its lumber products include J-GRADE, 2 AND BETTER, SELECT, STUDS, ECONOMY and 3. The Company operates a two-line sawmill in Mackenzie, British Columbia (the Mackenzie Mill). Its Mackenzie Mill has approximately 240 million board feet of annual lumber capacity on a two-shift basis. It operates a 36-megawatt biomass power generation plant in Mackenzie, British Columbia (the Power Plant), located at the site of its Mackenzie Mill. Its Power Plant's output capacity is in excess of 230 gigawatt hours (GWh) of electricity per year.


TSX:CFF - Post by User

Comment by dosperroson Feb 17, 2021 9:25am
122 Views
Post# 32583134

RE:RE:Stock could explode...

RE:RE:Stock could explode...I agree.  My understanding is most margin thresholds are $2, so I'd expect more trading volume in this regard may be a bit closer to $3.  I had a high-conviction position in another forestry outfit a few years back (Tembec) that was in this boat.  I margined it as soon as I could and it largely worked well, but I did have one setback when it closed back below $2.00 one day and I had to close the position.  So closer to $3 will provide more certainty that you won't get forced off a position if something odd happens. 

I'd always thought the threshold for most fund ownership was closer to $5, but I gather it is more nuanced than that. 
https://www.fool.com/investing/2017/11/06/can-mutual-funds-own-stocks-under-5.aspx

In any case, to drive broader ownership means someone else ties their brand to you.  Your public-facing house must therefore be in order.  Put another way, you certainly can't look like a dog's breakfast in a fund client looks you up.  The Conifex Investor Relations page is an absolute disgrace.  This is unacceptable and speaks to BoD that is derelict in their responsibilities.  In light of the US South fiasco, we are all rather sensitive to this. They are 2 quarters, going on 3, behind on presentations with Q1-2020 being the most recent.  No vision.  No overview.  No guiding principles.  What the @*$! is this company: a utility? a lumber co?  Is it going to grow, become a cash cow, or a hybrid strategy? What are its capital allocation priorities?  How will growth be funded?  What's the investment thesis? 

This stuff matters, and having a site that seems to mostly offer up a bunch of pictures of Ken is no substitute.  Cool man, I get it, you're a dashing corporate visionary, and that’s all good as narcissism is no longer a personality disorder in the DSM-V.  How about we let you keep the copious pics of you up there to keep your friends impressed, in exchange for you getting around to articulating a coherent strategy?  Fair trade?

They need structure and a vison.  It may exist, but I have not seen it.  Unless it clear and prominent, I get the impression that it may just be Ken's capricious whims when steering the ship.  The man is not stupid, but we cannot trust his future capital allocation given past results, so the least he can do is summarize the go-forward vision.  The lack of this means any fund disclosing Conifex holdings could look silly if an investor looked it up.  PE or other institutions are likely fine as they contextualize it in a letter.


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