Post by
lifeisgood1010 on May 27, 2022 1:12pm
Trading at more than half it's replacement cost
At $33 ,IFP is trading at $384,600 / MBF
We all know that the cost of building a new mill is in between $800,000 and $1,100,000
So what are worth IFP highly profitable and well located mills?
$500m, $600m,$700m...
OK these mills are not brand new but many of them have had multi year capex expenditures.
$500,000 would give us $42.90
$600,000 would give us $51.50
$700,000 would give us $60.05
So Ramond James 12 month target of $60 tell us that he values the mill at $700,000
Investors that can do the math will realize how cheap Interfor is trading at.
As per my calculations, IFP will close Q2 with more than 300 million $ in cash and with a book value north of $37
I will bet you that before the Q2 announcement, there will be an announcement for the
deployment of that cash.
My bet is that we will see a SIB of at least 4 to 6 million shares.
Here are the latest eps estimates from RJ
Investment analysts at Raymond James boosted their Q3 2022 EPS estimates for Interfor in a report issued on Thursday, May 12th. Raymond James analyst D. Swetlishoff now expects that the company will earn $2.79 per share for the quarter, up from their prior forecast of $2.52. Raymond James has a “Strong-Buy” rating and a $60.00 price objective on the stock. Raymond James also issued estimates for Interfor’s Q4 2022 earnings at $2.63 EPS and FY2022 earnings at $16.68 EPS.