SP Holding up wellI have to admit, the SP is holding up better than I anticipated.
Lumber Futures average for 3rd quarter are down to $554 .. 30% plus less than 2nd Q.
Down again Friday by $25 to $435.
Futures have now been below $500 for 6 of the last 7 trading days.
An interesting comparison:
Tree Island Steel (TSL) - (a company that Amar Doman has a 34% interest in through Futura) are doing quite well :
1st Q EPS = 45 cents, 2nd Q EPS = 46 cents … or 91 cents per share for the 1st half of 2022.
They stated in their 2nd Q News Release that “higher” product prices had offset increased costs due to inflation & other factors.
The Cdn dollar is now at a 2-year low, which (if it continues at these rates) will benefit TSL as approximately 65% of their revenue is generated in the US.
Sure, it’s a much smaller company than DBM but their 6-month EPS of 91 cents compares to a 12-month EPS of 93 cents for DBM. The Market for TSL's Steel Wire products cover a wide range from Industrial, Construction, Agricultural & specialty applications. Their product prices (so far) seem to be holding up well.
TSL is currently trading at $3.40 while DBM is at $6.05.
The LOGIC escapes me!