RE:RE:RE:RE:Lumber pricesYeah, huge earnings this quarter. Over $2.00 in the first 6 months on a $10 stock. The market, of course, won't give full credit for these as they will reduce as lumber prices come down and the market slows as other parts of the economy opens, but I'd fully expect to see some big dividends later this year.
Regarding lumber prices, GDL has stated in the past that they try to tightly manage inventory and the latest financial report shows Inventories are less than the latest quarter's Cost of Goods Sold, so they should only have 1 quarter of inventory at risk. I haven't been able to find out if they use a FIFO or LIFO approach or some other, so I agree there may be some risk in their margins for the next quarter. But if you look at the current quarter, which had the advantage of rising lumber prices, their sales /COGS ratio was 1.30 vs. 1.23 last year, so it appears that they were able to take advantage of rising prices, but the risk as prices come down is not as dramatic as you might think based on lumber price changes.