RE:OpportunityNot so sure TheBridge.
As previously posted, I sold my shares soon after the 2nd Q earnings release. (in hindsight I should have waited a week or so & could have got an additional 30 to 40 cents a share)
There is a strong correlation of lumber futures to DBM earnings.
Average futures in 1st Q were $1,197.
Average futures in 2nd Q were $797.
A 33% reduction in futures generated a 50% reduction in earnings.
Average futures to date in 3rd Q are $578 .. a further 27.5% reduction.
Also, while Doman inferred (on Aug 3rd) that prices were stabilizing to a healthy number, average futures for August dropped to $531 vs $622 in July.
Lumber futures today have dropped to $496.
There, of course, could be an improvement in September but I'm betting the SP will fall significantly from here (?) ... we'll see.
While DBM provides an excellent dividend ... when the SP drops from their last divi date (July 1st to present) by 44 cents ($6.44 to $6.00), the 14 cents a quarter becomes much less attractive.