Tambourah Metals Ltd T.TMB.W

Wk of Jan 2 in Review

[Lash99]

I was hoping to talk about OSB and I-joists this week to share how sales for both have been doing incredibly well but the issue of the SLA has taken center stage. Yes the U.S. has voted 5-0 to agree to dig deeper to see if there are issues of damages to their lumber industry. We knew this was coming and yet it spooked and or gave opportunity to the average investor. Meaning in the form of panic selling or shorting the stock . Again , what an opportunity at this level !! Futures closed Friday at , Jan down 2.60 to 312.70 and Mar closed down 1.20 to 327.40. I will try and keep this in front of you so you can follow the trend. Now these numbers to me are fairly flat . There is a little disfunction and or disconnect here as the information regarding the SLA should have popped the futures and yet it went down. To me this is why there is a huge opportunity to buy at a very cheap price. Jeez I even bought at $2.33 . Now this week of sales was fair at best and I think that over the next 2 weeks we are going to see a very healthy lumber market. We have had some bad weather this week that slowed sales but for the most part it has been fairly mild right across the country. Toll Bros and NVR Building are doing very well. These are the largest home builders in the U.S. , so keep an eye on their stock price as it is a good leading indicator. The truss industry is looking for fiber and what this means to me is all new homes. The manufacturing industry in most sectors are back next week , meaning truss manucturers , RV Manufacturers etc. For whatever reason they really do not get going until the second week of January. Anyway , everything still looks very positive for the economy in the U.S. and this means a higher demand for Canadian Lumber. Lastly , the Canadian dollar is hovering between 1.32 and 1.34 , fantastic numbers for the Canadian Mills. Oh and there will not be a duty in place until after May 1 2017 , unless there is a negotiated deal before hand. So , status quo until then and if the President of Tembec is buying shares , I am too. Good luck to all . Lash