junior lumber stocks
Lumber stocks have had a slight improvement in price in 2013.Lumber prices hit a recent high in the spring of 2013 of $400 per 1000 board feet.The 50 day moving average is $340 and the 200 day moving average is only $343.The present day price is $369.So there is a slight uptrend since the summer and usually the fall sees a rise in price.But will it rise until the spring?This is doubtful unless we get an injection of demand from Asian markets.This market has been steady for all lumber stocks(including juniors).We will now look at two junior stocks-Ainsworth Lumber and Western Forest.
Both companies have large investors Western has Brookfield and Brookfield has a big share of Ainsworth.Ainsworth is about three times higher in price-$3.90 a share versus $1.40 per share for Western.Western' s earnings per share is higher and their P/E ratio is better.Brookfield has just recently converted some debt into shares and now has about 49% of Western sharesIt is not yet clear what effect Brookfield will have on Western.Will they force a larger investment program on Western and will they raise their dividend to give Brookfield a better return on their investment?
The size of their assets is very similar;Ainsworth has $835 to $606 for Western and the shareholder equity is about the same-$385 to $357 for Western.Their financial statistics are just about the same but Western's price is a lot lower.Brookfield has a large share of both but Western just recently declared a dividend and hasn't hardly moved since.But I am thinking earnings season will have a better impact on Western which has just sold off some non-core assets and has a very efficient operation.In addition, both stocks should gain from the rise in fall prices.
Both companies have large investors Western has Brookfield and Brookfield has a big share of Ainsworth.Ainsworth is about three times higher in price-$3.90 a share versus $1.40 per share for Western.Western' s earnings per share is higher and their P/E ratio is better.Brookfield has just recently converted some debt into shares and now has about 49% of Western sharesIt is not yet clear what effect Brookfield will have on Western.Will they force a larger investment program on Western and will they raise their dividend to give Brookfield a better return on their investment?
The size of their assets is very similar;Ainsworth has $835 to $606 for Western and the shareholder equity is about the same-$385 to $357 for Western.Their financial statistics are just about the same but Western's price is a lot lower.Brookfield has a large share of both but Western just recently declared a dividend and hasn't hardly moved since.But I am thinking earnings season will have a better impact on Western which has just sold off some non-core assets and has a very efficient operation.In addition, both stocks should gain from the rise in fall prices.
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