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West Fraser Timber Co Ltd T.WFG

Alternate Symbol(s):  WFG

West Fraser Timber Co. Ltd. is a diversified wood products company. The Company is engaged in manufacturing, selling, marketing and distributing lumber, engineered wood products, including oriented strand board (OSB), laminated veneer lumber (LVL), medium-density fiberboard (MDF), plywood, particleboard, pulp, newsprint, wood chips and other residuals and renewable energy. Its products are used in home construction, repair and remodeling, industrial applications, paper, tissues, and box materials. Its segments include Lumber, North America engineered wood products (NA EWP), Pulp & Paper and Europe EWP. Its business comprises lumber mills, OSB facilities, renewable energy facilities, pulp and paper mills, plywood facilities, MDF facilities, particleboard facilities, LVL facility, treated wood facility, and veneer facility. The Company operates approximately 58 facilities in Canada, the United States, the United Kingdom and Europe. It also offers wood preservation services.


TSX:WFG - Post by User

Comment by dosperroson Dec 03, 2020 11:41pm
82 Views
Post# 32034910

RE:RE:RE:What's not to like

RE:RE:RE:What's not to like

I see merit in both arguments.  The main point is these are separate companies until it's official. As such, they deploy capital in isolation and to its most effective use until they get the all clear.

Nobody is going to go on a wild spending spree or anything, but a meaningful portion of the cash war chest is up for grabs I think.  Why would it not be?   WFT also softened their tone on the balanced approach in remarks yesterday.

Last, this is from memory a few years ago, BAM used to hold >50%.  When they exited to <50% it wasn't by selling, they just issued a bunch of shares than attenuated the value of my holdings and lined their pockets.  It was a really greasy move, that led my to just buy BAM and others after to get in on the sleaze.  It was a huge F-you to everyone not named Brookfield. I remember cursing a blue streak.  I think this must have been the link: they basically diluted it by 7M shares to line their pockets as an equivalent spec. div.  That isn’t an option, but the use of cash is.  I expect $4/share for Q4-2020 to be coming.

https://www.newswire.ca/news-releases/brookfield-capital-partners-ii-osb-lp-completes-distribution-of-shares-of-norbord-inc-to-fund-investors-650822553.html

Why?  Well Q1 is off to a huge start already and will be a monster.  Party on dudes with the Q4 money this was not a one and done.  Maybe even WFT gets in on the part and issues one.  Starnger things have happned.

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