This company is creates specialty wood products for outdoor living, home components and other applications. They hav around 6 million cubic metres of allowable annual cut in British Columbia
Last year they reported over $1.1 Billion in revenues. They currently make most of their money from specialty lumber productsas well as logs and commodity lumber. They also sell internationally.
A huge reason as to why I believe that this company has large short-term upside potential is because of the lumber market. As a result of COVID-19, people are looking to move and the US and Canadian housing markets have surged. Not only that but interest rates are at an all-time low. All of this has led to US-housing starts being at an all time high as of last month.
This in turn has led to lumber prices being at an all time high. A company that makes their money through selling lumber is bound to profit greatly.
I currently believe that this company alot of room to grow. They grew their revenues by 19.5% in 2020 and with the current lumber prices I believe it is set to increase by even more this year.
This company is also has very little debt and currently sports a Current Ratio of 2.1 and they have lowered their debt by over 55% in the last 3 quarters.
They are also committed to running a sustainable business and have planted over 20 million treee seedlings over the past 3 years. This is not necessarily an important point but it is good to note that sustainable companies tend to perform better than other companies.