Post by
ferret_ca on Dec 23, 2020 1:56pm
WEF price targets and expectations
most people on this board complaining about mere 1.50 price targets clearing don't understand this company. a big chunk of wef's sales go to asia receiving lower prices than the north american markets, plus the bc govt hasn't been any help as far as wef is concerned , tax loss selling has also been ongoing and will end very soon. all other cdn producers are receiving much higher prices on almost all of their sales so there has been more upside there, so their stocks have reacted accordingly this year.
there are many pluses for wef going forward compared to the others imho, management has been working on converting more sales to the higher north american market and once they show success at this the analysts will raise their targets. another plus is the asian markets have had recent increases in their lumber pricing. wef's diversity in the past has been a benefit when prices were low in north america but has obviously hurt in the past year of so. they have also been increasing their finished products with higher margins on an ongoing basis.
imho magmt has done a good job here and continues to do so. personally I would'nt consider selling at anything under 2 bucks (might take another year but probably much less) and probably closer to $3. wef has way more upside than the others imho due to all of the above things I mentioned but I fully understand why the top sp targets are 1.50 at this point in time, 2 quarters from now we will be much much higher imho, so far todays been a good day but the next few months should be even better.
cheers, gl and happy holidays to all of you, ferret