CFPZF - Canfor: Looking For An Entry Point
Falling Stock Prices Create An Opportunity
Source: Bloomberg
Worsening Industry Fundamentals
The problems for the forestry industry have their roots in climate change which has resulted in mountain pine beetle population exploding due to warmer winters, coupled with record forest fires destroying large areas of the forest. This has resulted in successive reductions in the annual allowable cut by the British Columbia provincial government over the past few years to the point where now there are too many mills and not enough timber supply to keep all of them running.
Source: West Fraser's Annual