Doman Building Materials Group Ltd T.DBM

2nd Q Earnings

[Stocker46]

Net Earnings of $53.1 million for 2nd Q and $87.3 million for 6 months

I guess that means the SP will drop tomorrow.

Just can't make any sense of it.
Last week DBM SP rose by $1.17 (96 cents in one day) .. obviously in anticipation of a good 2nd Q.

Friday a major competitor (TBL) posts record 2nd Q earnings ($59 M) and their share price goes up a whopping 3 cents while DMB goes down 18 cents ???????

[pjn0987654321]

I don't understand it either, however the share issue at $10 is looking like a good move now.  

[Stocker46]

Yes, it sure does look good now. That was just after they reported Net Earnings of $34 M in 1st Q & I assume around the time they hit their 52 wk high of $10.83 Yesterday (3 mths later) they report Net Earnings of $53 M for 2nd Q & the Share Price is in free fall ... go figure. (now at $7.34)

[DaveInvestor59]

How did this company miss the street consensus for earnings? So annoying. It seemwd like a "can't miss" considering these products have been in high demand. What a rotten time to load up on this stock. I expected a far better report. Down 8% today.

[Stocker46]

What earnings consensus would you be referring to?

[Stocker46]

Street consensus .. regardless, not quite sure how anyone can be annoyed by record earnings of $53 M. Rarely pay much attention to the over or under exuberance of analysts who predict quarterly EPS. Here's the problem: At least 5 or 6 analysts show a strong buy and a short term SP projection between $10 & $14. Based on those projections you can assume the SP (prior to the latest

[Arbutus22]

Can anyone enlighten me on reason for the drastic sp fall yesterday and today?

[pjn0987654321]

The fast money, tipped off that the quarterly was good, quickly piled in and when a pop in share price didn't happen, they were just as quick to pile out.  Just a guess.  Previous posts here have said while the DBM quarterly was good, it missed consensus.

[DaveInvestor59]

The Globe & Mail called this an oversold stock ready to breakout (to the upside) about a week ago, and investors piled in. They were wrong. This didnt turn out to be an opportunity. It's been a breakout stock to the downside annoyingly. The last two days have been ridiculous.

[Red_Deer]

Hey LEO__This DISCLOSURE in the MD&A Report MOST CERTAINLY Would Throw COLD WATER on the HOT $10 DBM eh !!!!! In response to the Pandemic in general, as well as the recent sharp declines in wood products pricing, the Company is taking steps to bolster its cash flows, including but not limited to, managing cash flow by reducing non-cash working capital levels and capital expenditures