Interfor Corp T.IFP

Lumber futures do not reflect current lumber prices

[StefanSalvatore]

Reminder that lumber futures are not the current lumber prices. It is merely an indicator that helps point a direction in lumber prices. IFP mainly sells SYP lumber and WSPF lumber through their operations in the US south and BC interior.

 

Current price for WSPF is $1630/mfbm and for SYP is $1390/mfbm as of yesterday.

 

It’s ridiculous that this stock dips every time futures are dipping but lumber prices are still hitting new highs each week. Seems to be rebounding now though that people realize today is the ex-dividend date.

Usually the Southern Yellow Pine 2x4's are more expensive than W. SPF but lately the trend is that BC Interior lumber is more pricier. Probably due to higher tariffs from Canadian producers but Interfor benefits from both. 

Q2 will have much higher average lumber prices to show for and the amount of money they will make will reflect that. Theres no reason at all that this stock shouldn't at least be trading in the 40s and making its way to the 50s. A lot of analysts believe so but we need big money here to do that not just retail investors.

Share buybacks through the NCIB aren't enough, they need to annouce a SIB to buy back at least 15-20% of their float since we haven't seen much institutional ownership come in. Or people on the board should acknowledge the value in their company and invest themselves. 

If lumber prices can keep this up for another month or so I believe we will see just that. There's just the uncertainty that lumber will crash hard, but that cannot happen unless supply is met with demand and judging by a lot of earnings calls in the industry they are fully booked this summer with lots of demand. 

We need some strong housing starts data next month and this stock will really pop.

[Olderguy1]

Correction… tomorrow May 27 is the exdividend date, not today May 26, Otherwise, thank you for some good comments. …

[StefanSalvatore]

My apologies, i always thought the ex dividend date was 2 business days before the record date but I was mistaken. Thank you for that 

[StefanSalvatore]

Taken from Investopedia, "To be eligible for the dividend, you must buy the stock at least two business days before the date of record." IFP's record date is May 28, so today (May 26) was the last day you can be eligible for the dividend.  Yes you are correct the ex-dividend date is tomorrow since it's 1 day before the record day. I meant initially in my previous post

[WindsorGuy]

It would be a mi9ostake to sell now IMHO. The best is yet to come based solely on the fundamentals. It is not very often you get to invest in such an undervalued company. GLTA