Western Forest Products Inc T.WEF

WEF -way undervalued

[astutein]

Here are some facts to due diligence with respect to valuation.

At March 31 book value was shown on TD INk to be $ 1.34 after Q1.

With conservative estimate of earnings I project the following :  Q2   .16  Q3 14  Q4 14 =  44.

So are book value just by earnings goes to  $ 1.78 and probablywith EBIDA close to$ 2.00.

Trading at two times book value would equal  $ 4.00.

What about all of forestry lands for future.  On balance sheet listed at what cost.

What about longterm 8 year contracts and labour relations with First Nations?

WEF has no debt and buying back shares in NCIB to increase shareholder value?

Currently paying a dividend of  .01cent quarterly with prospect of increase next quarter.

What about  P/E ratio at end of year.

Just average investor and not genious like stock analyts.

 

WHAT COMMENTS WOULD OTHERS LIKE TO MAKE.   

I am missing lot of other factors  which affect book value.  Like times cash flow.

[ferret_ca]

I agree that it's undervalued at this point,  but imho looking at book value of ANY commodity stock is a mugs game, all commodity stocks are price takers not price makers. lumber and a lot of other commodities look good for the near to medium term but we all know how they cycle. while you make a lot of valid points don't forget that wef is losing available timber to log so the

[ACarrothers]

Things to add/consider that could favourably add to cash flow/book value - Tariff recovery (retroactive) based on lower rates - Potentially lower tariffs go forward if a new deal is struck with the US - Remaining sale to Huu-ay-aht First Nations

[astutein]

analyts are quick to overlook particular resons why WEFwent to . 68 cents last year . The perfect storm hit. At time the pandemic uncertainty hit most of us longterm holders of WEF or those knew the facts were smart enough to know the main reasons why WEF fell in price. There was a prolonged strike at WEF's mills shutting down our mills.    We had no revenue coming in.