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Western Forest Products Inc T.WEF

Alternate Symbol(s):  WFSTF

Western Forest Products Inc. is a Canada-based integrated forest products company building a margin-focused log and lumber business to compete in global softwood markets. The Company’s primary business is the sale of lumber and logs, which includes timber harvesting, sawmilling logs into specialty lumber, value-added lumber and glulam remanufacturing, and wholesaling purchased lumber. It has a lumber capacity of approximately 885 million board feet from six sawmills, as well as operates four remanufacturing facilities and two glulam manufacturing facilities. The Company's product categories include outdoor living, exterior appearance, LIFESTYLE CEDAR, interior living, structural, industrial and WFP engineered products. Its outdoor living products include decking, timbers and fencing products. Its LIFESTYLE CEDAR products include LIFESTYLE CEDAR Decking and LIFESTYLE CEDAR Fencing. Its WFP Engineered Products include curved and arched glulams, straight glulams, and fabricated trusses.


TSX:WEF - Post by User

Bullboard Posts
Post by louelon May 31, 2019 1:12pm
213 Views
Post# 29789194

My present Veiw.

My present Veiw.Lumber A dry May didnt produce the level of sales that most were hoping for, especially for lumber mills. Any upward price fluctuations in the market downtrend were largely brought upon by lumber mills implementing curtailments and temporary closings, in an attempt to lessen lumber inventories. Although this calculated effort was intended to create a rally the market, it did little to instigate greater demand. Weak sales kept prices bumping along a flat line. Not to say that demand was weak at the retail level. Activity was good and outtake kept orders in the pipeline, but not to the extent that it pressured supply or bolstered prices for mills. There is plenty of work in the field but simply still not enough to significantly increase demand. Despite good weather conditions or supply regulating, sales will have to wait for more building. Typical practice amongst lumber buyers is to buy a little heavy in anticipation of business, However the current moderate outtake has afforded the ability to replenish lumber requirements without urgency at these lower prices. Normally spikes and rallies are seen when building business hits suddenly all at once, or when drastic restrictions or government infrastructure programs shoot out lead times. Unless something like these things happens, prices should not be expected to fluctuate much beyond todays levels. Mills typically close for a few weeks in the summer for retooling and maintenance. The timing also allows workers a short period with their family's for summer recreation. July is only one month away, Some production will be affected. With this in mind, I would expect prices to be Stabil for a few weeks and perhaps a slight upward move near the end of the month . But the upward move could find some resistance from the volume of lumber inventory still stockpiled. Considering the mills inventory combined with ongoing production it may be fall before a significant rally ensues. The $1.50 to 160's share price I suggested in a post Oct 17 2018 is now a reality. From here it is anybody's guess. Technically (if they are valid) from here horizontal price support gains strength should it further decline. An upward sloping support trendline in the Mid $1.40s. Watch for consolidation in price. structure
Bullboard Posts