RE:RE:RE:RE:RE:Export of logsWhy is managment shakey ? What improvments would you make to increase the profit line ? How would you increase the lumber price ? If you suggest improvments, How would you pay for them ? Run up more debt which raised the amount of interest paid each Quarter ?
If you choose to escalate the debt level, overextend the credit line. (Liquidity) where would the money come from if the market goes into a severe correction. to carry the company till the bear recinds. They did that in 07 and went bankrupt.
Harbance Doman was gentle and generous with his employees, and over extended in pre 1999. Well liked great guy. Those actions & policies caused his failure and bankruptcy in the crash of 2000 / 2001 He never survived. Lost everything he spent a lifetime building.
Before him Mac & Blo was the biggest forest company in the world. Lack of guarding finances and constant upgrading caused HR MacMillan financial stress and ended up being taken over by Weyco.
That is the history of Western Forest products. Would you like it to repeat the same mistakes ? If you do your not a share holder.
One thing the management has done here is upgrade to increase production and so far have done an excellent job of keeping an eye on finances so far.