02-28-2022, 04:42 AM
What am I missing about Canfor? CFP.TO
<!-- SC_OFF --><div class="md"><p>Canfor is a BC based forestry company. Our local billionaire Jim Pattinson owns 50% of it. It’s trading at a P/E of 2. They are not new. They have so much cash in the bank and lumber prices have been crazy for the last 6 months. When they post their earnings this week and again for q1 in April it looks like they will basically have current cash equal to their outstanding share value. They will be trading at a share value that should basically equal the past 18 months earnings.</p> <p>Other bc lumber companies of a similar size, debt, etc. are trading at a P/E of around 4-5 which to me still seems low considering lumber prices for the last year and half and the current usd to cad. Like I know Elon musk is cool and was on SNL and Joe Rogan but Tesla is trading at 200P/E. </p> <p>I follow lumber prices based on lbs=f which is currently at 1200. Canfor seems to break even around 400 and turn profit over that mark. Also they have locked in a labour agreement so wages are fixed to increase at 2.5 - 3% over the next 3 years. </p> <p>So what am I missing? With EPS at $14, Why is this not at least an $80 per share company?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/jman85462"> /u/jman85462 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/t35710/what_am_i_missing_about_canfor_cfpto/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/t35710/what_am_i_missing_about_canfor_cfpto/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>Canfor is a BC based forestry company. Our local billionaire Jim Pattinson owns 50% of it. It’s trading at a P/E of 2. They are not new. They have so much cash in the bank and lumber prices have been crazy for the last 6 months. When they post their earnings this week and again for q1 in April it looks like they will basically have current cash equal to their outstanding share value. They will be trading at a share value that should basically equal the past 18 months earnings.</p> <p>Other bc lumber companies of a similar size, debt, etc. are trading at a P/E of around 4-5 which to me still seems low considering lumber prices for the last year and half and the current usd to cad. Like I know Elon musk is cool and was on SNL and Joe Rogan but Tesla is trading at 200P/E. </p> <p>I follow lumber prices based on lbs=f which is currently at 1200. Canfor seems to break even around 400 and turn profit over that mark. Also they have locked in a labour agreement so wages are fixed to increase at 2.5 - 3% over the next 3 years. </p> <p>So what am I missing? With EPS at $14, Why is this not at least an $80 per share company?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/jman85462"> /u/jman85462 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/t35710/what_am_i_missing_about_canfor_cfpto/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/t35710/what_am_i_missing_about_canfor_cfpto/">[comments]</a></span>Kind Regards R