Western Forest Products Inc T.WEF

excellent buying opportunity?

[astutein]

Although WEF has continued downward trend In my opinion represents an excellent buying opportunity for a few of the following reasons:

---Repurchased large amount of shares under NIB which increases shareholder value.
---One year ago WEF had debt of 121 million and tonight believe will report cash of approx 40 
     million with less shares o/s.  This alone in next year would eliminate 10 million of cash to service loan.  Increased cash flow.
---For six months alone earnings  should be .30 cents.  less than 5 times cash flow.  Q3 and Q4  come at .15  will be P/E of 4.   45 cents per share for$ 190 stock?
--Deposit of 124 million ( i believe) on deposit for US export duties at rate of 22% and actual when  determined could  15 million in earnings if determined rate 15%.  Q4?
--Trading  at close to book value.
--Buyout could be interesting to some company in lumber space.

Last but not least:

I support the argument of most lumber analysts that current price drop is near bottom and recovery will soon start.  Substantial orders will come from Home Depot, Loews and other  lumber retailers and builders.   Housebuilding at high levels in US.  Orders will becoming in and demand will again exceed supply.

Analyts are predicting price  rise starting soon and by labour days commoditity price will rise.


Thanks my take folks as I purchased more today ahead of earnings.

[madmax42]

I bought some today too. Like I recently said I don't have any expectations short term. Look at the peers who report record Q2... Medium/long term looks very good though. 

[ACarrothers]

$0.30 for the first 6 months of 2021 is conservative no? WEF posted $0.14 in Q1 alone so that's in the bag. Won't we be a lot higher then $0.16 EPS when reported tonight given that lumber prices were much higher in Q2 vs Q1? What am I missing?

[downwithdotcom1]

could be..any Q2 CURTAILMENT / SHIPPING issues due to the non stop fire/smoke occurances out west?? remember, they do have 7 mills in BC no??? Also, market tend to focus on whats next  ie 3rd/4th quarter outlook..my net position right now is just above $2 and i decided to just sit pat.. i did get some trades earlier but the trading range and volumes have been alot tighter as of late so no joy