10 Year Low - time to buy? A new 10 Year low and Double bottom on the chart makes this an interesting investment. This stock has been punished more than most other lumber companies and more than the 28% reduction in lumber production that they estimated. I took a small position today and will hold it for at least a year, adding to it if it goes lower or higher. You have to take a longer view with this and other lumber related companies, especially if there is a housing slow down. Look at the last run after hitting a new low in January 2016. It went from $1.85 to $6.91. CFF has a very low current price to book ratio of 0.226 and decent balance sheet so there is little risk at this time in my opinion.
CFF should soon start up operations again at Fort St. James which could start a new run. Here is their last PR:
VANCOUVER, British Columbia, Jan. 31, 2019 (GLOBE NEWSWIRE) -- Conifex Timber Inc. (TSX: CFF) (“Conifex”) announced today that it is temporarily curtailing sawmill operations at its Fort St. James, British Columbia sawmill for three weeks commencing February 4, 2019, due primarily to continued high log costs and lumber market conditions.
The temporary curtailment, together with Conifex’s previously announced curtailment which commenced in January, will result in an estimated 28% reduction in Conifex’s B.C. lumber production for the first six-months of this year.