Thought I should get this in the right forum...
I've just been holding. Presently, I'd probably look at buying below 9.00 and selling above 11.00. Otherwise, I might just hold this one for the long term.
I'm vacationing in NS, so I can't comment on how busy that lumber yard is, but from recent reports I've read, building activity in Canada is still very strong. I know that I've bought a few building supplies myself recently.
Here's a quote from an old (late '80s) article on the company:
"Eleven years ago, Goodfellow became the first company in Eastern Canada to produce this pressure-treated lumber. This willingness to innovate, combined with an aggressive program of acquisitions, has been a hallmark of the company since 1970, when the founder's son, George Goodfellow, took control. Annual sales were just $8.5 million then."
About the company, here are a few things that come to mind:
--based on the 9mo. results, we could be looking at something like a yearend profit of $1.40/sh. on sales of around $290 million.
--that's about 14% annual sales growth since '70
--annual growth over the last 10 years has been around 7% (sales were about $160 million in '87). Although lower than previously, this rate was maintained despite the years of recession, despite being in a mature industry, and despite the Quebec factor.
--Profit growth is matching or outpacing sales growth
--this year, sales will be up something like 35-45% over last year
GDL is quietly followed by the renowned investor, Stephen Jarislowsky, who was (is?) a company director and is reportedly a personal friend of the Goodfellow family. Within the past year, he's made a major purchase of shares.
Things look good, barring any unexpected political or economic nasties.
--Mike |
