IFSPF - Lumber shares set up for year-end rally with worst of the selloff past

If history is any guide, Bloomberg believes shares of lumber producers should rebound as the homebuilding season picks up into year-end, after plunging lumber prices sent shares reeling in recent weeks. Lumber prices and shares of companies such West Fraser Timber (NYSE:WFG), Louisiana-Pacific (NYSE:LPX) and Canfor (OTCPK:CFPZF) have tended to slump in September before rallying into the new year, according to a Bloomberg analysis, and RBC's Paul Quinn figures this year will be no different. "We see a positive setup for the traditional seasonal trade, where shares will typically bottom around mid-to-late October before rallying in anticipation of the upcoming building season," Quinn says. "Although lumber stocks are likely to remain under pressure until pricing starts to increase, we think that the worst of the declines are over and that it is a good time to start getting up to speed on the sector," according to Quinn, whose top "deep

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Lumber shares set up for year-end rally with worst of the selloff past