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Interfor Corp T.IFP

Alternate Symbol(s):  IFSPF

Interfor Corporation is a Canada-based forest products company. The Company and its subsidiaries produce wood products in Canada and the United States for sale to markets around the world. It operates through the solid wood products segment. The Company’s product categories include Dimension Lumber, Specialty Lumber and Engineered Wood Products. Its products include Spruce-Pine-Fir, Douglas Fir-Larch, Hem-Fir, Southern Yellow Pine, Western Red Cedar, Douglas Fir-Larch, and P3-Joist. Its sawmills provide a diverse range of sustainable products to supply North American markets with a complete offering of framing materials. Its Western Red Cedar products include Elite Decking, Elite Fascia & Boards, Elite V-Joint Paneling, Elite Fineline Paneling, Elite Channel/Lap Siding, Elite Bevel Siding and Elite Shadow Gap Siding. It has an annual lumber production capacity of approximately 5.0 billion board feet and offers a diverse line of lumber products to customers around the world.


TSX:IFP - Post by User

Comment by dosperroson Nov 09, 2020 9:07am
91 Views
Post# 31861688

RE:RBC

RE:RBCI think I've said this before, but thank you for posting this!! It's most appreicated and a big help.

Great context on the M&A -- I had not considered that.

I think the elephant in the room is multiple expansion.  A target os 6.25 is an absolute absurdidy IF the industry conditions can stay robust (e.g. lumber at $500/mfbm).  I think it can given the fundamentals.  Moreover in a cash-starved envrionment (supporting fundamentals in terms of building activity) this cash should be more valuable.  I could see WY type multiples for IFP and WFT in the future.  Imagine Paul Quinn casually tossing out 10.0x EBITDA as a target for a fully de-leveraged firm.  That's a bit of $40/share by my math.  We are not getting that in the next year, but 2022?  2023?  Will be interesting.

Next step is to pay sharehodlers to wait.  I mostly trust IFP's board to follow the Norbord model rather than that of Canfor.
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