Canfor is trading at $160 USD per thousand board feet vs. the November lumber futures price of $559.80 USD and versus the mill replacement cost which many believe is around $800 USD.
Even though Jimmy Pattison's men are trying to keep the share price down, $25.19 is way too low.
Canfor is sitting on $1.267 billion in net cash and $849 million in U.S. duties which are likely recoverable at least 50% after the U.S. midterms.
Yet Canfor's managment has done nothing with its excess cash. Why? Because they don't want the share price to go up so that Jimmy Pattison can make another low-ball take over offer.
Kronospan, CVC Capital and I understand some large Canadian and U.S. pension funds may be buying out West Fraser in the near future. Jimmy will try to take over Canfor and then sell out as well.
I suggest every shareholder write Letko Brosseau (info@lba.ca) who owns around 5% and join forces in making Canfor's managment act in the best interests of all shareholders, not just Jimmy Pattison.
The market's low valuation of Canfor is telling you that it doesn't trust managment, especially that turd Ryan Barrington-Foote who makes sure Canfor's managment has no incentive to buy shares and take action to increase the share price (such as large share buy-backs which are a no-brainer). Canfor managment likely has incentives from the Pattison Group rather than Canfor.
| Price - 2022-09-12 | 25.19 |
| Net cash per share | 13.81 |
| Value ex cash | 11.38 |
| Shares outstanding | 122,520,000 |
| | 1,394,778,800 |
| Capacity - 2022 | 6,700,000 |
| CAD price per Mbf | 208 |
| USD price per Mbf | 160 |
| | |