RE:RE:RE:RE:RE:Q2 ResultsGuess I'll never quite understand the mentality of DBM investors.
A little perspective:
2nd Q 2021 was a record quarter - Net Earning over $53 M & EPS at 64 cents.The SP rose to just over $8 for a few days (after the news release) but fell to $6.35 by the end of Sept (futures fell in Sept - 2nd Half of Sept futures averaged about $630)
Fast forward to 2022:
DBM had an excellent 1st Q NE of $42 M & EPS of 48 cents. May SP was mostly over $7. Average lumber futures in 1st Q were $1,197.
2nd Q 2022 - NE of $20 M & EPS of 24 cents (big drop).
Average lumber futures to Aug 8 are $595 .. $508 for only August.
Ok so too much info. The point is that futures have fallen from $1,197 in Q1 to $797 in Q2 & that $400 drop is reflected in Q2 earnings. Since the end of 2nd Q, futures have dropped another $200 & it appears they are continuing downward as housing starts are falling, inflation is rising, and fears of a reccession persist ... AND YET after today's gain of 4.7%, the SP is just about right back where is was prior to the release of 2nd Q.
What am I missing?