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Western Forest Products Inc T.WEF

Alternate Symbol(s):  WFSTF

Western Forest Products Inc. is a Canada-based integrated forest products company building a margin-focused log and lumber business to compete in global softwood markets. The Company’s primary business is the sale of lumber and logs, which includes timber harvesting, sawmilling logs into specialty lumber, value-added lumber and glulam remanufacturing, and wholesaling purchased lumber. It has a lumber capacity of approximately 885 million board feet from six sawmills, as well as operates four remanufacturing facilities and two glulam manufacturing facilities. The Company's product categories include outdoor living, exterior appearance, LIFESTYLE CEDAR, interior living, structural, industrial and WFP engineered products. Its outdoor living products include decking, timbers and fencing products. Its LIFESTYLE CEDAR products include LIFESTYLE CEDAR Decking and LIFESTYLE CEDAR Fencing. Its WFP Engineered Products include curved and arched glulams, straight glulams, and fabricated trusses.


TSX:WEF - Post by User

Comment by dosperroson Dec 19, 2020 1:41pm
182 Views
Post# 32147290

RE:RE:Lumber prices

RE:RE:Lumber prices

Nope, they are OK on pricing. Cedar is the superior product, but the TRX guys doing highly durable composites have been at their heels as a cheaper but decent substitute for ages.  Don't give them an inch, and the market has not. 


Commodity lumber is better as steel studs are tough to work with, need crew re training, and are still costlier than SPF or HF or SYP studs. Not by much as I understand, but it's why we won't likely see lumber at $1000 for any sustained period.  We shouldn't.  I think we can all have tremendous margins and remake the industry with commodity pricing where it is now. 


So, this has been my point all along.  Don is asleep at the switch with respect to expansion, diversification, and economies of scale.  These is all inversely related to a NCIB and div though. Maybe CFP was right all along?  Well no, that's rather extreme.  But WFT and their modest div likely is.  


I guess when it's all said and done, in a cedar price limited environment, with daunting capital costs to get into the commodity game, mean WEF is likey in the dust bin of history.  It'll be a "coastal division" for whoever takes it over.  No shame in that.  


Is there a poison pill in place?  If not, this could just get a hostile takeover at ~$2.00 which would be end of the road.  Shoot maybe even less.  

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