West Fraser Timber Co Ltd T.WFG

BNN...DUMB

[Dadsaid2]

Andy's guest Michael Sprung was asked about WFG and why it dropped $8 today. Neither of them had any insight on that but this Michael Sprung guy has no clue what he is talking about when it comes to lumber....sort of like Andy....lol.

[lifeisgood1010]

Hi Dad, i was just going to post the same thing, unfortunatly and sadly for BNN listeners this  Michael Sprung is indeed clueless. To say WFT is overvalued like all other lumber company because  the price to book is at 3+  is ridiculous to say the least. WFG will probably earn north of $30/ share this years.Not to mentioned the huge free cash flow It's only a guess on my part

[Dadsaid2]

This is why l urge all shareholders to keep the pressure on WFG board to issue dividends. Here are reasons.... Lumber futures can greatly influence WFG share price but really don't affect earnings. Yes Tuesday futures were down but cash & contract prices reported by Random Lengths and Madisons were all up last Friday. This is the price the mill is selling at and pricing their contracts at.

[sunshine7]

And maybe that sums up the short thesis... lumber has peaked and no dividends expected. Lumber (like most commodities), given its volatile history, is not a dividend environment. From what I understand, they have instead put share buyback as the way to give back to shareholders. Maybe a special divi or acqusition would be appropriate.

[Frost19]

Yeah I thought he was a funny old man who really shouldn't have been asked a question on a company he doesn't know much about.  Initially saying WFG is trading at high multiples...then checks his other screen and clearly see's a P/E of 8 and immdieately backtracks saying well it looks cheap actually on a P/E basis but says price to book is 3.7 times which is supposed to be

[retiredcf]

Sprung is trying to get things on the cheap. As an example, he said the same thing about Mullen (ie. it's expensive and he would like to buy it 10 or 15% cheaper) and was obviously completely unaware that it had just received multiple upgrades following their earnings.  He's also extremely conservative as is evident from his top picks (MFC, SU and BCE). GLTA