Doman Building Materials Group Ltd T.DBM

Home Depot

[Donwaan]

Their Q4 and FY 2022 results seemed very comparable to 2021. But shares dropped 4.0% as the home improvement chain forecast 2023 annual profit below estimates due to higher supply-chain costs and weak demand.

[Red_Deer]

Hey Donwaan__HOME DEPOT being a RETAILER is NOT a Very Good COMPARABLE to Doman I see LOTS of CanWell Branded TREATED LUMBER and Timbers in the Local HOME DEPOT store and it Seems to be Still MOVING Well. NoneTheLess NO DOUBT that 2023 is NOT GOING to be a PICNIC for Most Companies

[pennydredful]

As  we  Doman are  part of  the  supply  chain its good to hear  we got a high price and  squeezed  the likes of   Home   Depot..

[Stocker46]

... but that "high price" is going down.

[pennydredful]

Basically  you  have   3  players  ;  Guys  that  cut  down trees and make  them into  boards  , 2.  Guys like   doman  that  pick up  the boards  etc.  upgrade  product   to pressure  treated  wood. and  3.  retailers   like   Home Depot.&

[Red_Deer]

PENNY__There Actually IS Some IMPACT upon Doman with Falling Lumber prices On their BALANCE SHEET Financials Doman has OFTEN Had to TAKE a WRITE DOWN on the VALUE of Their OLDER INVENTORY of UNSOLD Product. In Other Words Doman HAD Paid a HIGH PRICE for the OLDEST UNSOLD Inventory__Which NOW Doman Will HAVE to SELL to the HOME DEPOTS @ a LOSS to What DOMAN Paid ORIGINALLY

[Stocker46]

I"ll refer you to my post on February 17th. Suffice it to say, history has shown that as lumber futures fall, so do Doman's earnings.

[xenes25]

Trust me, HD does not allow any vendor to "squeeze" them.