RE:Outstanding Results and ValueI agree 100% , I think it'll trend up to the 2.50ish range over the next few weeks, looks like a bit of resistance there most likely and then after next q it should work it's way up to that 2.75 to 3 range as long as lumber futures don't crater.
the sell on news crowd looking for a quick buck on earnings are bailing today plus as said, a good q was at least partially baked in, it's done this before on good q results , no initial pop and then works it's way up as analysts boost targets.
those rose colored peeps with the 4 and 5 dollar targets on here are not worth arguing with , they don't fully understand the company or even 1/2 understand it imho. they see 1600 lumber and think wef gets that for pretty much all their sales and start extrapotlating crazy #'s etc. they increased their nort hamerican sales mid 60% of sales in the q and have room to increase that % a bit more. lots of other positives to like but people overlook the negatives from the q and going forward. wef will always trade at lower multiples due to size and being a commodity stock, you will never get a normal multiple with lumber at these prices. also they have less timber to harvest going forward due to sales and a probably cutback on 1 tfl. so basically the bc govt is forcing wef to shrink in production capabilities. they will spend on upgrading some mills for more finished products etc and to increase kiln drying capacity, so some extra costs coming up. also as they said they are getting royally screwed on the duty on finished products going to the usa.
lots more to like than not like but it's not all full steam ahead to 4 or 5 bucks imho, lol. I won't be trimming any for a while yet unless something changes dramaticaly in the sector. I'm glad to see them buy back shares and invest in the biz rather than increase divy at this time, but as they said, they will review the divy quarterly. great cash position and they are staying the course, good mgmt imho and prices in asia are significantly improving, I hope they stay somewhat diversified that way as it has saved their azz in previous downturns.
cheers and gl ferret