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Conifex Timber Inc T.CFF

Alternate Symbol(s):  CFXTF

Conifex Timber Inc. is a Canada-based forest products company, which operates fiber baskets in North America, northern British Columbia. The Company produces lumber products and renewable energy from its sawmill and bioenergy plant in Mackenzie, British Columbia. Its lumber products are sold in the United States, Canadian and Japanese markets. It also produces bioenergy at its power generation facility at Mackenzie, British Columbia. Its lumber products include J-GRADE, 2 AND BETTER, SELECT, STUDS, ECONOMY and 3. The Company operates a two-line sawmill in Mackenzie, British Columbia (the Mackenzie Mill). Its Mackenzie Mill has approximately 240 million board feet of annual lumber capacity on a two-shift basis. It operates a 36-megawatt biomass power generation plant in Mackenzie, British Columbia (the Power Plant), located at the site of its Mackenzie Mill. Its Power Plant's output capacity is in excess of 230 gigawatt hours (GWh) of electricity per year.


TSX:CFF - Post by User

Bullboard Posts
Comment by dosperroson Feb 04, 2020 5:41pm
72 Views
Post# 30642489

RE:Mackenzie sold sooner? -Timber stocks rally on U.S. softwood

RE:Mackenzie sold sooner? -Timber stocks rally on U.S. softwoodMaybe.  I'd sooner see them capitalize on an 8% combined duty, low Canaidan dollar, and power plant earnings and become a sick cash cow.

Check out how RBC described Acadioan timber:
"Valuation (11/1/2019): Our price target of $18 supports our Sector Perform rating. We value Acadian Timber based on a 16.0x blended EV/EBITDA multiple of our trend EBITDA estimate of $24.7MM (weighted 85%) and our 2020 EBITDA estimate of $23.7MM (weighted 15%). Our valuation multiple is slightly higher than pure-play timberland peers such as RYN and CTT, reflecting Acadian’s consistent financial trends and FCF generation, low leverage, and attractive dividend yield.

A 16x multilpe (not that they'll get that, but they could sure do 12x to 14x) on the CFF run rate EBITDA of maybe $20M ot $30M is worth between $6.95 a share and $10.43 a share by my math.

Just be a cash cow and be done with it.  And pay me to hold my shares like any other reasonable company would.  I'll take the 25%+ div (easy payont of $12M on 46M shares outstanding).
Bullboard Posts