Post by
Hanalyst727 on Jan 13, 2023 10:54pm
Bottom In?
Pretty grim here. Bottom may be in though. March lumber futures sneakid up 20% in the past week to $435. Another new-years price rally coming?
The high interest rates are a downer, but the market seems to miss the incredible employment market. The economy is humming with tons of jobs and eventually this will drive lumber up.
With Interfor's acquisitions and lower share count no company is better positioned to cash in on the next upswing. Yes, they may be slightly EBITDA negative in Q4, but there is no valuation being given to the optionality for a fture upswing. Intefor is trading at half book, plus offers free call option on lumber prices.
Also quite dissappointning that they have not bought back shares since the last NCIB announced. At this share price management should be snorkling them up even with the low cash flow. Humiliating to see even that geriatric staid Canfor buying back now, but not Interfor.
Something has gotta give at these prices. Possible catalysts:
- lumber price rebound
- 10% shareholder emerges finally.
- lumber dispute settlement
- takeover offer
Whatever happened to levereaged buyouts by management?
Comment by
cnotes22 on Jan 15, 2023 12:41am
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