RE:RE:RE:RE:RE:RE:Very good news on new duty rate( lower)Great points, all.
RBC says this and I agree. I think it's scathing.
"Capital allocation – With 2020 shaping up to be a record year for wood product and tissue producers, the question becomes, what will they do with the free cash flow? In our view, investors have discounted industry performance due to challenges deploying capital in a value-added way. For example, investing in capacity tends to cause reduced pricing, while share repurchases tend to coincide with cyclical share price highs. We expect that executives will be thoughtful about how they deploy the excess capital from a record year."
When I worked at a mill on the other side of the road from the WFT supermill back in the day at the lowest point lumber was <$200. WFT ran rull tilt, 3 shifts a day, and would have ~12 railcards and dozens of B-train trucks lined up each morning to sell for a cash loss and flood the US. Who, it should be noted, didn not want that volume. And we wonder we we have tarriffs.
So WFT is no angel. I'd like to see less of the "last man standing" buffonery they champion and more of a balanced competetive approach. Time will tell. The issue was OSB was awesome at making margins via finding the "blue ocean strategy" e.g. peace and goodwill towards LPX. Swapping mills. Not flooding the market. Etc.
You can check out the other firms that might get iced. A "shareholder rights plan" or poison pill is key. E.g. it'll cost a fortune to take out Conifex. I'm excited to get a payday there. I hope.