Doman Building Materials Group Ltd T.DBM

Q2 Results

[Donwaan]

Well it looks like it's back to the real world for DBM this Q2. Being a long time shareholder they have been through worse and yet continually pay their dividend, 49 consecutive quarters and counting.

[maplak]

So what are you trying to say? I am holding don't give a fuuck just collecting my dividends.

[Stocker46]

Disappointing for sure. TD consensus eps was  from 26 to 53 cents. & they didn't even meet the lower end. With Lumber futures likely heading below $500, the SP could take a beating over the next few months. Haven't decided yet whether to sell now & hope to get back in cheaper or tough it out. The only positive at this point is the healthy dividend .. if it stays where it is.&

[Donwaan]

Will be interesting to see how the market reacts after the analysts call at 11 am ET. I am expecting reassurance from management and a confirmation of the dividend policy.

[Donwaan]

Did anyone listen in on the analysts call? Any takeaways?

[Stocker46]

Pulled the plug earlier today (average $6.07) .. should have paid more attention to the "seeing general economic head winds manifesting" comment after 1st Q. Can't see things getting better in the second half of 2022. Futures down to $475 today. I like the company and hope to get back in at some point .. hard giving up the dividend.

[Stocker46]

Guess I'll never quite understand the mentality of DBM investors. A little perspective: 2nd Q 2021 was a record quarter - Net Earning over $53 M & EPS at 64 cents.The SP rose to just over $8 for a few days (after the news release) but fell to $6.35 by the end of Sept (futures fell in Sept - 2nd Half of Sept futures averaged about $630) Fast forward to 2022: DBM had an excellent 1st Q

[Stocker46]

Missed a significant point in the 2nd Q 2022 paragraph (got ahead of myself & got into 3rd Q data). Average lumber futures in 2nd Q 2022 were $797 vs $1,197 in 1st Q .. so futures dropped by 33% but earnings dropped by more than 50%.

[pennydredful]

in   other  words   because  of volatilty  to  the downside  DBM   got   caught   with   high   cost   inventory   that  they  could   not   totally   pass   on    so  their   margin    in  2nd

[pennydredful]

Your  missing  the  fact  only  a  medium  %age   of  Doman,s  business  revolves  around the  price  of  lumber   and    2.    if   the  wholesale  price  of   lumber  is  lower  ,  chances  are  Doman  as a