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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

Post by bbwiboneon May 06, 2021 12:02pm
181 Views
Post# 33141112

Outstanding Results and Value

Outstanding Results and ValueThe nature of these companies is they will likely always be cheap - they won't get a multiple of a tech company. But $3+ is still entirely achieveable - likely a P/E of 5 or less at current runs rates and a return of 30-40% in the next year, which on a normal year would be several times the index return. People may be underestimating the impact of this company buying back 150-200k shares every single day. This is a debt free cash flowing company, and these buybacks are the best way to bring the price back to record levels.

It will take time though, because there are people who have been holding this a long time and looking to get out, or who bought last year below $1 where it was most of the year. But look at lumber prices! Still higher! July futures now above $1600. and September approach $1500. And still, WEF has a higher yield than any competitors who mostly have none (IFP, CFP, RFP, etc. WFG 0.7% yield). WEF is still a value play in a cyclical sector that is going to move for a while. And cylicals are gaining in popularity.
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