Doman Building Materials Group Ltd T.DBM

Just In Case

[TheBridge]

Just in case you're interested, Thursday's Analysts Updates in the Globe & Mail included  a CIBC World Markets paper and forest products analyst, Hamir Patel comments. He raised his recommendation for DBM to "outperformer" from "neutral" with a $7.50 target. "With the company's diversified exposure to NA treated lumber markets and Canadian distribution, we believe DBM is well positioned to benefit from a stronger housing backdrop." We noted that the shares have lagged Canadian treated peer Stella-Jones (SJ-T) by 90% over the past year, and have also lagged other Canadian building product distributors (ADEN and RCH have outperformed DBM by 5 - 12% over the same period). DBM is trading at a 2.0 times multiple discount to SJ on a 2024 EV/EBITDA.

[pennydredful]

To  say  SJ  is  a  peer  of   DBM   is  laughable   since  they  operate  in different markets  ,  do not sell  competing products   and   the only  thing they  have in common  is  that  they  treat  wood. The  other  two  are 

[TheBridge]

Penny, I appreciate your clarification of how the others contrast DBM.

[pennydredful]

The  only commonality  between   SJ  and  DBM  is  they  both  benefit  from wind storms  , hurricanes tornadoes  and  the like  as    decks  fences  houses  damaged  as  well  as   utility   poles.