RFP - Resolute Forest Products: Demand Outlook Is Peaking Time To Take Profits

• Lumber prices are in a second substantial rally, rising over 60% since the end of Q2.
• Resolute Forest Products is likely to have another strong quarter with wood product prices looking strong and demand for other wood products holding steady.
• Resolute is now trading at a much higher valuation than it was when I've covered it last.
• A potential reversal in wood product demand from builders due to a decline in 2021 new home demand may upend RFP's long-term earnings outlook.
• While RFP is still an inexpensive stock, I believe it may be a good time to take profits on the stock due to potential liquidity and sales reversal risks.

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