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Tembec Inc. T.TMB.W

"Tembec Inc along with its subsidiaries operates an integrated forest products business. It produces lumber & building materials, manufactures & markets specialty cellulose & high-yield pulps, and produces & sells coated bleached board & newsprint."


TSX:TMB.W - Post by User

Post by Lash99on Apr 08, 2017 11:01am
164 Views
Post# 26095640

Wk of April 3rd in Review

Wk of April 3rd in ReviewWell it's a wild one ! The lumber market is in full defensive mode regarding duties as West Fraser started everything off by raising prices $100 per mfbm. Most of the mills in Canada followed suit including the Tolko s in the west to the Resolute's in the east. Tembec had also raised their prices significantly to look after any issue of the duty . Will the prices hold ? Well probably not at the top level , but as several of my customers in the U.S. have told me , we are not happy with this big jump in prices but we also cannot be running our plants out of fiber. So with that being said , we have a lumber market and prices should hold within $15-$30 of the raised numbers. It's busy out there , we are just heading into the building season and not everybody had participated on the buying spree yet because of bad weather in the Northeast. Now , regarding Tembec's share price , I know we have been in consolidation mode , I would like to know , who's selling and who's buying ? Is there a fund trying to get out ? Or maybe a fund is trying to get in and it is keeping the stock low to get a position. I don't know but I do know this , Tembec up until a year ago struggled more than most in this industry of lumber and or fiber. Just when this building cycle is ramping up in the States our Tembec is stalling and is in consolidation mode ?The West Fraser's and Canfors and the OSB stocks are all significantly higher , Tembec's is so undervalued I have to question the sellers of this stock , "are you stupid or something ? " But I guess mama always says , " Stupid is as stupid does" . I don't mean to offend anyone but sometimes this game of supply and demand just doesn't make any sense. Especially when this is the best market we have seen in a decade. Best of luck to all. Lash
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