RE:Revised Targets Thanks for analysts' comment retiredcf
I bought in today as I firmly believe the Hixson acqun is a good way to benefit from not only larger product mix and customer base but is a further offset to lower average inventory costs, particularly with the relatively large decline in prices over the past several weeks.
On the latter we have this quote from your post, namely:
Also, “During the call, management mentioned that following a soft end to Q2, volumes have been picking up in Q3 aided by the noted price reductions in construction materials. We thus believe we will see recovering volumes reach a more normalized level (similar to 2019) throughout the remainder of 2021 and into 2022. Longer-term demand drivers remain solid with the rate of new housing starts in Canada (not too sure about the latest reports supporting this comment) and the U.S. increasing 44 per cent year-over-year in the quarter.”
On Hixson there are several quotes;
One analyst mentions "...the “transformational” acquisition of Texas-based Hixson Lumber...) while another remarks on "...the transformational benefits we foresee from Doman’s recent Hixson acquisition,” and yet another recognises "... DBM as well-positioned to benefit from a multi-year period of robust shipments for treated lumber across North America (as well as heathy Canadian distribution volumes)
Finally there is the comment "...we expect the recent US$408-million Hixson Lumber acquisition (closed June 4) to open up additional acquisition opportunities for DBM across the U.S. beyond its prior focus on the U.S. West Coast.”