John Goldsmith, at Monstrusco Bolton, says buy Western
2014-04-23 07:11 ET - In the News The Financial Post reports in its Wednesday edition John Goldsmith, at Monstrusco Bolton, says buy Western Forest Products ($2.26). The Post's Jonathan Ratner, writing in Buy & Sell, says Mr. Goldsmith added Western Forest to the NEI Northwest Specialty Equity Fund early this year. Mr. Goldsmith explains Western is Canada's fifth-largest lumber company; it is also the biggest cedar manufacturer in North America and has higher margins, a more "sticky" business and trades at a lower valuation multiple than its peers. "They are a key manufacturer of Western red cedar, which puts them into a bit of a niche since there is a lot of overseas demand for specialty-type products," Mr. Goldsmith said. "Japan is very demanding in terms of the specifications for wood, and this type sells for a slightly higher price." He figures Western Forest's biggest risk is significant economic slowdown in Western Canada. The fund manager figures there is enormous opportunity in Canada, and is keying in on the coming liquid natural gas boom. "The amount of potential investment in LNG cannot be given enough air time," Mr. Goldsmith said, noting that projects for roughly 11 billion cubic feet of LNG per day have been approved. 2014-04-23 07:11 ET - In the News The Financial Post reports in its Wednesday edition John Goldsmith, at Monstrusco Bolton, says buy Western Forest Products ($2.26). The Post's Jonathan Ratner, writing in Buy & Sell, says Mr. Goldsmith added Western Forest to the NEI Northwest Specialty Equity Fund early this year. Mr. Goldsmith explains Western is Canada's fifth-largest lumber company; it is also the biggest cedar manufacturer in North America and has higher margins, a more "sticky" business and trades at a lower valuation multiple than its peers. "They are a key manufacturer of Western red cedar, which puts them into a bit of a niche since there is a lot of overseas demand for specialty-type products," Mr. Goldsmith said. "Japan is very demanding in terms of the specifications for wood, and this type sells for a slightly higher price." He figures Western Forest's biggest risk is significant economic slowdown in Western Canada. The fund manager figures there is enormous opportunity in Canada, and is keying in on the coming liquid natural gas boom. "The amount of potential investment in LNG cannot be given enough air time," Mr. Goldsmith said, noting that projects for roughly 11 billion cubic feet of LNG per day have been approved. .......................................................................... On TD Website the analysts show 1 hold, 4 buys and 1 syrong buy for WEF.