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West Fraser Timber Co Ltd T.WFG

Alternate Symbol(s):  WFG

West Fraser Timber Co. Ltd. is a diversified wood products company. The Company is engaged in manufacturing, selling, marketing and distributing lumber, engineered wood products, including oriented strand board (OSB), laminated veneer lumber (LVL), medium-density fiberboard (MDF), plywood, particleboard, pulp, newsprint, wood chips and other residuals and renewable energy. Its products are used in home construction, repair and remodeling, industrial applications, paper, tissues, and box materials. Its segments include Lumber, North America engineered wood products (NA EWP), Pulp & Paper and Europe EWP. Its business comprises lumber mills, OSB facilities, renewable energy facilities, pulp and paper mills, plywood facilities, MDF facilities, particleboard facilities, LVL facility, treated wood facility, and veneer facility. The Company operates approximately 58 facilities in Canada, the United States, the United Kingdom and Europe. It also offers wood preservation services.


TSX:WFG - Post by User

Comment by dosperroson Dec 04, 2020 9:26am
66 Views
Post# 32035888

RE:RE:RE:RE:What's not to like

RE:RE:RE:RE:What's not to likeI'm betting the same as you are -- that this happened.  Well, it's not really a bet as it just means maintaining my positon in both, but I'd be inclined to see see BAM get paid.

Notably, in the presentaiton on page 15, both companies have a similar amount of cash on hand as of Q3.  So combined pro forma cash is $475M.  That's plenty I think.  So, OSB may distribute the full Q4 earnings via Spec. Div.  WFT may follow suit.  There's not strategic need to come into the merged entity sitting on a billion + in cash -- that's the domain of an inefficient balance sheet.

https://www.norbord.com/cms/wp-content/uploads/West-Fraser-Norbord-Presentation.pdf

The only downside will be perception.  The OSB crowd may howl they'ld like these to keep running, not die with WFT.  So that's where action for WFT shareholders in Q4 would be hlepful and welcome.

So full Q4 earnings going to us (and our friends BAM) could be as high as $5 or even $6 a share perhaps depending just on how strong Q4 was.  And it's a howler for the ages I think.
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