Mid cycle EBITDAEven with today's jump,IFP is still trading at very low multiples.
It is not geting the credit for all the good work achived in 2021
Analysts uses mid cycle EBITDA to get to their price target.
From what i have read, they are still using pricing of SPF of about $450 for 2022.
IFP never traded even close to the profitability achieved in 2021 and it is still not
getting any credit for the transformation achived via all the cheap acquisitions they made.
It's the pur play of the sector and it has a pristine balance sheet even if they have grown
the company substantially.
They didn't buy any shares in nov. and they won't buy any in december.
They will be there as a backstop if the selling price were to drop
If the price rises, then i think they will continue to reduce debt and increase the war chess for another timely acquisition at the right price and at the right location.
I have said it many time, the best is yet to come with this lumber company .
Lumber is in a super cycle
Housing is way way under built in the USA.Demand will remain strong and with what is going
out in BC, we will see surprising strong lumber prices for much longer and much much higher than what analysts are using.
Apart from Daryl Swetlishoff(Raymond James), they will one by one increase their Target prices.
If my memory id good, M.Swetlishoff target is $60.
I would not bet against him.Then again with IFP as my biggest position, you could say
that i have a big bias..
Time will tell