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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
Post by dosperroson Aug 11, 2020 3:23pm
105 Views
Post# 31394350

Yet... more work needs to be done. The P/B is in the gutter

Yet... more work needs to be done. The P/B is in the gutterAs a quick skim, CFF has a price to book of about 0.44 whereas IFP, CFP and the like are at least 1.17.

So, to my previous comment, I think there's some (limited) momentum, but the onus on Ken is to transition from firefighting ("WE ARE NOT GONNA BE INSOLVENT") to realizing some minimal level of value.  

My hope, and theirs, was likely that Ken's 5 point plan in the Q1-2020 call would send the price back to the $2 or $3 level.  Will it was great for the status quo, but so light and wishy washy as to the future (and ran counter to the gospel of RBC) the SP rallied to $1 and stuck.

So, ball is in your court buddy.  Earn your damm pay.  Commit that either the powerplant pays its own debt and nothing else (debt free in ~3 or 4 years) then the mill pays divs on variable + corporate costs OR powerplant funds 100% shareholder payout and the mill pay the div.  The downside with the second case is the div is a rollercoaster.  I like option #1, moreover if they wanna do M&A leverage the lumber boom to use the cash from the mill for that WHILE using the powerplant to have a modicum of respect for shareholders and stabilize the SP.

In any case we need a dividend as a vehicle to return cash to shareholders.  NOT a grotesque NCIB that presumably will be botched. We see that lots -- e.g. Canfor.  They buy heave when the price is over $30, and ignore it when the price is <$10.  Not the most pragmatic approach, and I think CFF would butcher a NCIB just like Canfor.  I have not seen any good judgement from this team.  F the tax effectivenss of the buy-back and pay my my money guys.

Bullboard Posts