RE:RE:STOCK DOWN 52% - what is going on?
2young2invest wrote: Gosh, they bought all these mills at the top of lumber prices, what a fools.
To be fair, when they made the purchase announcements the stock was only $3.18, so they bought when the price of lumber was $1157, it rose to $1670 about a month later, so not at the top, but high, currently it's $536. Lumber is down 54% from the purchase price yet the stock is only down about 26%, that's not overly terrible when your referencing a stock off it's commodity. Also the mills produce more product for sales than just Lumber and there was a paper mill in there too, so not all pricing should be based on strict lumber.
The run up on all that news seemed insane and not based on anything after the news other than the news. I mentioned before I wanna see some quarterly reports and a price below $4 before I personally considered it, it's now looking attractive if the quarterly look good... but the fact they have priced thier rights so low, makes me think they aren't gonna show a solid next quarterly if they are discounting thier shares so much...
I emailed customer relations (Micheal Liggett) last Friday for more information on this offering, but I haven't gotten a response yet, which is also considering when I am interested in the company as a possible future investment.
I gotta say they looked good earlier, but with some weird movements in price and this offering, they need to give more transparency and show they are worth investing in... I'm personally gonna continue to sit on the sidelines.