RE:Are People Catching on to the Value to be Unlocked here? The net working capital of the business is worth more than the market cap.
Lumber futures rolled over at 401 today, highest since pre covid. Mortgage rates in the US hit an all time low today.
My thinking is an infrastructure package coupled with persistent low rates, demand for lumber will increase coupled with reduced supply.
Can only be good for the stock. They were planning a buyback/ dividend.
Risk is in the short term with an economically driven sell off in the broader market. With the prospects of a covid vaccine by year end seeming highly likely, homebuilding and infrastructure next year look to stoke lumber demand. Buy on dips for sure.
Thoughts?