Eacom Timber Corporation ETRFF

RE: RE: 38 cents

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FP says Canfor, rivals seen entering a "super cycle"

2013-03-27 09:42 ET - In the News

See In the News (C-CFP) Canfor Corp

The Financial Post reports in its Wednesday edition that Northland Wealth Management chief executive officer Arthur Salzer says rallying lumber and forest-product stocks still have legs. The Post's David Pett writes that Mr. Salzer says lumber prices will continue to rise thanks to the emergence of a "super cycle" in the underlying commodity. Mr. Salzer says, "Although it is a cyclical area and we have seen forestry stocks appreciate greatly in the past 12 months due to the recovery in the U.S. housing market, demand is greater than supply, which should push areas of the sector higher." The recent rise in lumber and forest-product equities is due to an equally significant run in lumber and oriented strand board prices. Raymond James analyst Daryl Swetlishoff says the combination of growing Asian demand, supply constraints and the U.S. housing recovery is resulting in a lumber "super cycle" that is still in its early stages. At current lumber prices, Mr. Swetlishoff sees upside of between 8 per cent and 16 per cent for each of Canfor, West Fraser Timber and Western Forest Products, while International Forest Products  IFP.A and Conifex Timber could climb 35 per cent or more over the next 12 months.