RE:Wow. Quite the chatter. #unimpressed
“This is a capital intensive industry”. Ironically i heard this argument by Air Canada shorters early last year and that stock is the top performer on the TSX. I know this is a capital intensive industry but my investment thesis runs parallel with market perception in addition to company performance. Growth here I admit is pretty stagnant so my bet mostly lies with the industry demand which I think will become apparent in the coming months. If lumber goes on a run investors are going to look at the best value and this stock has one of the best valuations in the sector. This company is positioned well to benefit from industry demand and stands to make pure profits. This month I’m betting is going to be a perfect storm of a strengthing U.S. dollar which we have already seen break a downtrend over the past few days, and a possible psychological long term resistence breakout in the price of lumber. I don’t recall mentioning anything about “MACDs” and I’m basing my investment thesis here far less on technicals than fundamentals.
As for the downgrade that was all based on one firm’s perception even though we’ve seen firms like Raymond James who has been bullish on this play buying like crazy over the past few days. The next upswing from here near term is 2.90. And the only reason we aren’t sitting at 2.80 right now is the result of this stock getting gamed. I’ve accumulated 20k more shares over the past 2 days and I will sell higher. Cheers