excellent buying opportunity? Although WEF has continued downward trend In my opinion represents an excellent buying opportunity for a few of the following reasons:
---Repurchased large amount of shares under NIB which increases shareholder value.
---One year ago WEF had debt of 121 million and tonight believe will report cash of approx 40
million with less shares o/s. This alone in next year would eliminate 10 million of cash to service loan. Increased cash flow.
---For six months alone earnings should be .30 cents. less than 5 times cash flow. Q3 and Q4 come at .15 will be P/E of 4. 45 cents per share for$ 190 stock?
--Deposit of 124 million ( i believe) on deposit for US export duties at rate of 22% and actual when determined could 15 million in earnings if determined rate 15%. Q4?
--Trading at close to book value.
--Buyout could be interesting to some company in lumber space.
Last but not least:
I support the argument of most lumber analysts that current price drop is near bottom and recovery will soon start. Substantial orders will come from Home Depot, Loews and other lumber retailers and builders. Housebuilding at high levels in US. Orders will becoming in and demand will again exceed supply.
Analyts are predicting price rise starting soon and by labour days commoditity price will rise.
Thanks my take folks as I purchased more today ahead of earnings.