RE: ..........,,,,,,,,,,,,Timely Commentary,,,,,,,,,,,,,,,,,,The artical suggests a basics of what to watch for. Simply put what it describes is a visual of the Macro trend ignoring micro ripples. And may be used in any time frame from long term to day trading. I use much the same approach Lower lows and lower highs simply put is a downtrend and the opposite moves price higher. (All time frames)
Presently the Macro trend lines upper and lower respectively are $1.25 & $1.09 converging to intersect around the end of Jan. 2020. One or the other will be ruptured by or before that time. The big order at $1.09 sits right on the lower trend line expecting at least a bounce to trade or hold if it gets filled.
Presently price is sitting within 1 cent of a double bottom with the first touch back on August 8th Will it fail, hold or create a dead cat bounce. There are stop losses a few cents below and a big short by some institution would trip them freeing up a vast amount of shares to be gathered up.
So one should also look for why such action is causing the trend in action. Is it over or under valued in relation to assets and Cash flow. Is the stock price being obstructed by physical or and market conditions which could be corrected. If so then it should be assessed in relationship to Future C/F. For when the strike ends and it will.
Present P/B ratio is .84% Current P/B with additional debt being incurred due to lack of production book is $1.38
Future CF for WEF suggests a different and interesting picture. Currently shares are trading at a discount of over 50% of projected future CF once things return to normal
The company is growing and WEF's share price once back in operation should this Market Bull run continue is projected to rise approx 20% per year. Then add in the dividend. The expected growth rate over the next 3 years is 140%+-
TSX:WEF PB (Price to Book) Ratio Data Sources | Data Point | Source | Value |
| Book Value per Share | Company Filings (2019-09-30) in CAD | CA$1.38 |
| TSX:WEF Share Price * | TSX (2019-12-09) in CAD | CA$1.16 |
| Canada Forestry Industry PB Ratio | Median Figure of 12 Publicly-Listed Forestry Companies | 1.12x |
| Canada Market PB Ratio | Median Figure of 2,311 Publicly-Listed Companies | 1.27x |
TSX:WEF PB (Price to Book) Ratio Calculation | | Calculation | Outcome |
| PB Ratio | = TSX:WEF Share Price ÷ Book Value per Share (both in CAD) = 1.16 ÷ 1.38 | 0.84x |
Just have to pay attention to developments for now