- 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.
For further details see:
Resolute Forest Products: Demand Outlook Is Peaking, Time To Take Profits