Interfor Corp IFSPF

Interesting take...

[packerdriver]

According to a US analyst the reason the lumber price is in the doldrums is as follows:
60% of lumber consumption happens in the selling of existing housing in the US
It's either renovate to get it ready to sell or renovate after you bough a fixer upper
Because of current interest rates and the American 30 year fixed rate mortgages people are simply just not moving...they're staying put...moving would mean a doubling of their interest expense.
The guy figured this is not about to change until interest rates drift back down at least a little closer to rates five years ago....then the pain of moving won't be as steep and people will sell/move/upgrade again.

[Apaulson]

I agree fudgepacker, that seems to be the case. Don't worry, rates will fall to a more flaccid level, and wood will rise.

[filoux004]

Bottom line the FED does not want a repeat of the 70s where Volker started to soon cutting the rates which was followed by an out of control reinflationary spiral ie 14% . Add a geopolitical mess ie Oil prices and US elections and you have a juggling act worthy of le cirque du Soleil. Glta. Footnote keep an eye on Paterson who has an eye interfor and failed a few years ago I belive his bid was 17$

[sunshine7]

If I recall correctly, the share price at the time was also lower but lumber market forecast supportive. You may be right, but he will likely wait until some more blood has been spilled.

[packerdriver]

I'm guessing you mean Pattison....the episode I remember is when he tried to take CFP private....the stock almost doubled....I always sell on a take out offer and on top of that I decided to exit lumber altogether right then... BIG MISTAKE that turned out to be....covid and the renovation boom pushed lumber to 1400 a thousand for a short while and all lumber stocks to all time highs!!! (BTW