- Lumber prices have soared on production cuts at a few sawmills and increased demand from homebuilders.
- This is likely to significantly boost Resolute Forest Products' Q3 and Q4 EBITDA, giving the company cash to reduce liabilities.
- Despite recent performance, Resolute remains extremely cheap on a forward "EV/EBITDA" and book-value basis.
- The forest products market may be in a lasting shortage due to a decline/stagnation in production activity over the past decade.
For further details see:
Resolute Forest Products: Prepare For Massive Q3 Earnings Windfall Due To 'Lumber Bubble'