RE:RE:RE:RE:RE:I should show my math given I said "easy $3/share"Haha right on. It's not everyday you can find a company worth way more dead than alive, with a high book value and strong fundamentals, that has it's market cap = next years earnings.
That's crazy, but speaks to the mgmt issues in the past. In hindsight it should never have been allowed to drop this far. But they present very poorly and have this weird fetish for growth (I think it's been largely removed from the website now -- these guys are the least capable of growth of any in the sector). The growth obsession meant deploying capital toward anything but shareholders. The seems to be ending now.
It's a revolving door for leadership too, and Ken seems to run it like a cult of personality. He's excellent at high finance and can certainly make deals, but the operational aspects of lumber are hard and he is playing a tough hand (and old and creaky mill with an old and creaky workforce, and the last vestiges of the dead pine.) That said, who cares.. the Mackenzie mill runs fine, the fibre is improving as the pivot to green spruce, and all is now well -- we know, but the market is likely one or two more quarters away from getting it. It's a cheap thrill to get in on the ground floor.
In short, their refusal to accept what they are -- a cash cow with steady high power cash and lumber upside -- has sunk the share price to the point where you and I are buying on the cheap. I'm pushing 0.2% total ownership and I'm just a regular joe. Crazy. Cash cows need to return capital, so this buy-back will start to change perception. It should have happened a long time ago.
I'll link to an RBC piece that discussed this clearly and compellingly.