Canfor Corp T.CFP

lumber price vs stock price

[YJ2019]

When Jim Pattison made the offer of $16 per share last August, the lumber price was about $330. Today, the lumber price is $524. So, very roughly speaking, if someone would made an offer today, the price would have to be around $25.4 per share (524 / 330 * 16). Of course, there are many other factors to consider in this estimate, such as the market trajactory of lumber price, pulp & paper, et al. But, does this rough estimate make any sense at all?

Also, as the share price approaches $16, what would be the thoughts of those shareholders who voted against the offer last December?

[lifeisgood1010]

Also not to forget is that only once over the past 30 years have we seen such high price for lumber (2018). When that happened, CFP hit a high of $34, WFT $98.So me have a lot of ground to make up for this disconnect between lumber price and Lumber company SP. What i like about CFP and WFT is their limited float.Any meaningfull demand could propel these two stocks. These two company have very

[Bookends]

The reason for lumber's contract, along with producers at 52 weeks high is probably the same reason why Gold and Gold producers being at 52 week high... I.E. inflation concerns as the central banks and governements spend (deficit and print) massive ammounts.  It's definitely not a bad idea to have an hedge outside of gold and most commodities are a great hedge.