Interfor Corp T.IFP

$280 per thousand board feet

[Apaulson]

At $25 per share, Interfor is trading at close to $280 per thousand board feet.  $25.00 X 54,788,000 shares outstanding / 4,900,000 thousand board feet capacity.  Actual realiable capacity may be closer to 4,500,000 thousand board feet and this doesn't take into account IFP's debt, which at the end of the 1st quarter was $340mm I believe.  But it also doesn't give any value to it's lumber duties paid of $362mm.  So $25 x 54,788,000 / 4,500,000 - 340mm = $379 per thousand board feet, which is still lower than the production costs.  Takeover?

[SleepingGiant64]

I don't think the board would support a takeover but a SIB in the $25-$30 range would be nice. They might try to take over GFP. It's wild that a company that made $6.69 last quarter (and will make another $4ish this quarter) is only trading for $25. That will put them back in a net-cash position at the end of Q2. Looking ahead, Scotia has Q3 at $1.56 earnings on $575 lumber. Even at that

[Apaulson]

Depends on the takeover price....I'm sure for the right price, the board would jump at it.  Interfor's whole strategic premise is to eventually be taken over by Canfor or West Fraser. I don't think a SIB would we well advised at this point.  Interfor's purchased their own shares at I think an average of $36 over the past year, and Green First has slumped since their