Taiga Building Products Ltd TGAFF

Loss Ahead

[canuckstocks]

Lumber prices have likely peaked by now. If so, Taiga will be buying high and selling low, and losing alot of money!

[downwithdotcom1]

WRONG and not a chance..TBLs management are 20+ year experts in inventory re-stocking and typically reduce inventories on sustained run-ups as to not get caught holding..Maybe margins get compressed shorter term BUT DEMAND STILL CONTINUES TO THRIVE. Again, maximising their margins is their bread and butter and alot of their stuff gets pre sold.. ALSO just because CME futures prices trading down

[canuckstocks]

No one can say for sure where demand will be going forward. And you misunderstood me. Its better for taiga (during share buybacks) and most of us for the share price to go down at this time for better accumulation. My homework is done

[Stocker46]

It's nice to have a good buying opportunity, but frankly, if the price isn't going higher after their recent earnings performance, what makes you think it ever will?

[canuckstocks]

if business stays this good in future quarters its only a matter of time. 

[TradeTracer]

One would think Taiga's management would take advantage of this unusual year and maximize their footprint going forward. Pay down debt with the record earnings, buy back shares with the new cash coming in (Avarga might like this as they theoritically could keep the same % ownership, and it would pay better than a dividend) or else take themselves private? You could boost your future EPS by 10%

[Stocker46]

Just being semi-serious .. but yes their recent earnings performance gives them a number of good options. A little frustrating to see the lack of movement in the SP. Guess we need a few more days like today.