RE:Bottom this should have never passed 1.35Time is running out for GFP
Strangely GFP didn’t post it’s 1Q-2024 financial statements on its website, but if you go to Sedar you can access them.
In the 1Q-2024, GFP’s cash flow from operations was minus ($24,900,000).
They had to borrow against their credit facilities to cover this loss.
Q2 is shaping up to be a much worse quarter than Q1.
Using the Madison Lumber Reporter’s Western SPF pricing as a guideline.
On May 17th, the Western SPF was $383.
Let’s pick January 19th….Western SPF was $442.
So lumber prices are generally down over 10%.
For Q2, GFP could have negative cash flow of minus ($27,390,000). [$24,900,000*1.10]
And that is why they reported in their Q1-2024 financial statement notes issued on May 15th:
“Subsequent to March 30, 2024, the Company had drawn an additional $10.4 million against the equipment financing portion of the credit facility.”
So they are burning through cash at an alarming rate.
As of March 31, 2024, they had remaining liquidity of $11.7 million remaining on an Asset-backed Lending Facility and $19.7 million of room on an equipment financing facility. (total of $31.4 million).
As of May 15th, they’ve already borrowed another $10.4 million as disclosed above, leaving $21 million of excess liquidity.
At this rate, they will be out of cash and the ability to borrow any more by July of 2024.
BUT, according to StockGuru454, the Book Value of their assets are higher than their debts so GFP should be fine.
Tell that to the shareholder in Teal Jones….
That massive volume of 487,000 of shares traded on Friday was investors bailing out, not getting in StockGuru454.