IFP: bought back 1.95 MM shrs in Feb
Patience needed with Interfor. They completed 32% of their NCIB in Feb at prices from $35.80 to $39.80, with most bought near the high end of range.
A senior exec even bought 2000 shares on the market on 8 March at $36.
Seems very likely IFP has continued to buy back aggressively in March.
What a great investment thesis this is.
- Crazy, likely-permanently-higher scarcity-based lumber prices due to:
a) Pent up housing demand and rising house prices which make the lumber price increase not look significant relative to house prices
b) Major ongoing production decline coming in BC
c) Near-impossibility to build greenfield in timely manner due to overheated economy + multi-year time lag if attempted
- Insulated from input cost inflation thanks to major oversupply of logs in US South where IFP has most exposure
- Growing production per shate through reinvestment:
a) Acquisition
b) Buybacks
My simple model suggest IFP could earn over C$ 7/share in Q1.