IFSPF - Interfor Corporation - Avoid This Low ROIC Play
All Lumber is Not Created Equal
The nose-dive in the stock markets since the onset of COVID-19 pandemic in February has opened up many opportunities offering good value especially in cyclical sectors which have sold-off with a speed reminiscent of the Global Financial Crisis of 2008. Canadian forestry is one such space where COVID-19 induced sell-off has exacerbated pre-existing disruptions caused by capacity curtailments and mountain pine beetle infestation. The chart below from Bloomberg shows the stock price performance of leading Canadian lumber stocks where all three of them have tumbled heavily since the beginning