Huge insider sellingRichard Goodfellow (the CEO) sold 36 300 shares this year at over $12 per share. He is definitely banking some of his profits in anticipation of a severe slowdown. You can check it out for yourself on SEDI.ca
As it stands, sales have fallen rather dramatically and the company is losing money. Also, the special dividend was suspended, and the regulate dividend is likely suspended as well.
I personally have sold all of my shares at $12.40. Long term, the company is still interesting, but I will only buy back in once we drop to the $5 range.
Management is really not that strong because they just have not been able to grow business very much over 10 years. They never developed a retail operation (like Lumber liquidators) so they are really at the mercy of large scale manufacturing. As such, they are negotiated to the bone on every sale (since builders buy in bulk).
Very tough industry. Plus, with their manufacturing operations, they are getting killed by the high Canadian Dollar. Smarter management would be taking advantage of the dollar by buying more products from overseas, rather than manufacturing here.
Anyways, see you again when we hit $5.