Not Slam Dunk Yet
Wednesday, February 12, 2020 at 9:00 a.m. PST (12:00 p.m. EST).
Don Demens, President and Chief Executive Officer, and Stephen Williams, Executive Vice President and Chief Financial Officer, will discuss the Company’s fourth quarter and fiscal 2019 results followed by a question and answer session.
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This is an important date for investors. Most of the company will have been totally idle during this quarter. Being the length of time frame with littlt to no production. It would not surprise me if they announced at least a suspension of the dividend till further notice. (Saving $8 Million each quarter) And may continue for an extended period. Especially if the labor problems are not settled.
It will take some time for the financial picture to recover to where it formerly was, let alone where it would have been had they not been. Should they not been forced to close by excessivel demands placed on the company.
Looking to the future, Lumber from North America and the Baltic region is traded on the Chicago Mercantile Exchange, it states;
Note; (CFD is nieither Bid or ASK but rather what the actual lumber selling price was transacted at.
C&P;
Lumber decreased 10.70 USD/1000 board feet or 2.63% since the beginning of 2020, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity.
Lumber is expected to trade at $350.00 USD/1000 board feet by the end of this quarter, according to Trading Economics Global Macro Models and analysts expectations. Looking forward, we estimate it to trade at $400.00 in 12 months time.
Present;
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Unquote;
For the next year the outlook is not realy robust after including added costs imposed by governments and labor plus recovery costs. Should the Exchange and analysts forecast hold true. with lumber dropping another $50.
If labor negotiations linger on, the company hunkers down to protect finances, With an announcement concerning the dividend. Share price could drop to a dollar or less. Those invested simply for the dividend would then seek other investments placing further downward pressure on the share price as they exited their positions.
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WEF turned over their timber rights to F/N on the Queen Charlottes. But retained the right to have first option on the Cedar by meeting the top bid price. Or let it be sold offshore to the US or elsewhere if they choose not to. Also WEF lost a great segment of their AAC for the Great Bear Rain forest reserve. TFL 47 was also shared with the FN band