RE:This company has so much cash! Fair points. Fairfax is a big bet of mine given the compelling deep value nature of RFP. That said, comparing GFPs return to others is tough given they scalped RYAM on that deal but had complex financing that most folks would shy away from.
But strategy is deciding what not to do. Just because they could have bought the legacy Tembec assets for the $200m cad doesn't mean they should have. Western FP should have tried. For adding 10% to lumber capacity it's the wrong part of the world and very old creaky assets -- none of which are at WFG mill standards. It's unlikely to be worth the dilution of mgmt focus
They have major synergies to be had by wider penetration of the US SE. That will happen when prices normalize and the mom and pop mills quit asking for a kings ransom to sell out
Moreover tired of a tarriff? Well operate in the US. They don't need additional tariff eligible wood coming online all equal.
My take? This pulled off the biggest and best acquisition in decades (ever?) with Norbord. That is the focus near term. I think the goal is easy and suitable tuck ins, of which the old Tembec mills are anything but.
This is shaping up to be the first credible long term hold in the industry which is amazing. Exciting times