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16 June 2021
10:11 hour

Resolute Forest declares special dividend, $50M in new lumber investments

Seeking Alpha

10/06/2021 - 23:44


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  1. RFP declares special dividend (11/06/2021 - Reddit Stocks)
    https://www.netnewsledger.com/2021/06/11/resolute-forest-products-declares-special-cash-dividend/ Resolute Forest Products Inc. (NYSE: RFP) (TSX: RFP) today declared a special cash dividend of $1.00 per share of common stock, payable on July 7 for holders of record at the close of business on June 28. The company also announced additional capital investments of $50 million in its wood products operations to support its continued growth, and it confirmed the repayment of all amounts outstanding under its revolving and term credit facilities, reducing debt by $180 million in the second quarter. I'm curious on thoughts about this. Will it cause a pump and dump? Is it intentional?   submitted by   /u/reddit_undo [link]   [comments]
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  2. $RFP - Resolute Announces $1/share Special Dividend and $50 million in Lumber Investments (11/06/2021 - Reddit Stock Market)
      submitted by   /u/th3t1nm4n [link]   [comments]
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  3. Resolute Forest Products declares $1.00 dividend (10/06/2021 - Seeking Alpha)

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  4. Resolute Forest Products only energy gainer; U.S. Silica, SM Energy among major losers (30/04/2021 - Seeking Alpha)

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  5. Resolute Forest, China Green Agriculture lead energy gainers; PHX Minerals, KLX Energy Services among major losers (16/04/2021 - Seeking Alpha)

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  6. Mexco Energy, China Green Agriculture lead energy gainers; Resolute Forest Products, Coeur Mining among major losers (29/04/2021 - Seeking Alpha)

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  7. Unitil, Profire Energy lead energy gainers; Peabody Energy, Resolute Forest Products among major losers (28/04/2021 - Seeking Alpha)

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  8. Western Forest Products declares CAD 0.01 dividend (06/05/2021 - Seeking Alpha)

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  9. With wood prices so high, curiosity struck me. Why is wood so expensive and where is all the money going? (03/06/2021 - Reddit Stocks)
    Wood is crazy expensive right now. and most seem to believe that the cost is driven by the demand for wood. But financial statements from 4 of the top 5 companies argues another excuse. According to Sawmill DB, the top 5 production mills in the US are: West Fraser, Canfor, Weyerhaeuser, Georgia Pacific (Not PT), and Resolute forests. Since GP is not publicly traded everything I share will not include them. One thing I noticed with all of these companies is that in the past year their stock price has sky rocketed. West Fraser: 130% Canfor 180% Weyerhaeuser 80% Resolute Forest 500% Why is their price doing this? it isn't like wsb is simping over it. Looking at all of their filings for the SEC tells you exactly why their price has jumped. it will also tell you why the price of wood has also skyrocketed. and it isnt a jump in demand that caused their price to raise or the price of wood to raise. These companies are just selling them for higher prices and pocketing the excess profit. There are 4 data points that support the artificial jump in prices. Inventories, Sales, COGS, and New Earnings. below is the data for all 4 companies. West Fraser :) Q1.2021 Q1.2020 increase of Inventories 1,137,000,000 735,000,000 21% Sales 2,343,000,000* 890,000,000 163% COGS 1,039,000,000 630,000,000 65% Selling, G and A 78,000,000 41,000,000 90% Net Earnings 665,000,000 9,000,000(no this is not a typo) 7289% *their acquisition of norbord was 707,000,000 of that unfortunately COGS for it isn't available. West Fraser has seen a jump in net earnings of over 7k percent. In one year they grew their net earnings by over 72x. COGS only increased by 65% which means the price of lumber or getting the lumber hasn't changed. This jump in COGS is likely due to Norbord. So even taking that out of the equation would mean they doubled their sales in a year. That is absolutely nuts. That is a profit margin that went from 2.4% to 66%. that is not normal, either. but we aren't done lets look at the other companies. Canfor :) Q4.2020 Q4.2019 Increase of Inventories 867,500,000 803,900,000 8% Sales 5,454,400,000 4,658,300,000 17% COGS 3,538,800,000 3,618,600,00 -2% Selling, G and A 127,900,000 124,900,000 2.4% Net Earnings 559,900,000 -269,700,000 WTF? Weyerhaeuser :) Q1.2021 Q1.2020 Increase Of Inventories 505,000,000 443,000,000 14% Sales 2,506,000,000 1,728,000,000 45% COGS 1,430,000,000 1,382,000,000 3% Selling, G and A 90,000,000 74,000,000 22% Net Earnings 681,000,000 150,000,000 354% Resolute Forest Products 3 months ending March 31st 2021 2020 Increase Of inventories 512,000,000 462,000,000 11% Sales 873,000,000 689,000,000 27% COGS 522,000,000 524,000,000 ~ Selling, G and A 46,000,000 34,000,000 35% Net Earnings 87,000,000 -1,000,000 another one turning things around Some interesting things to point out: all these companies have a significant increase in profit margin. 2 of them were able to reverse their position and get positive earnings, while the other 2 were able to increase their net earnings by significant amounts. in 3 of these cases, the increase in sale revenue was something to brag about. while the remaining company looks like they're geniuses for the growth they had. All of them did this with out having a huge jump in COGS. I include West Fraser in this because they acquired a company in Q1 of this year. for this reason I bet their COGS would like the same withholding their new acquisition. Although "Selling, G&A" is not nearly as important or necessary as the others it is still necessary to show that any increase in lumber is due to labor. I assume labor is incorporated in COGS but I want to provide this for anyone reading this and wondering if they may be putting labor into a different classification. That was my first though when I saw COGS didnt jump as high as sales. Inventories for all companies were marginally impacted. The growth they experienced I'd say is probably just volatility due to seasonal reasons. but an interesting tidbit I want to share is that all of these companies blame the increase in prices on the pandemic claiming that it had a negative impact on the supply side. but as you can tell all companies have a growth in their inventories. All but Resolute Forest value their inventories using the lower of costs. meaning that discounting the growth in inventories should be done to a minimum. They also blame an increase of demand from people working at home for the increase in business. This makes sense. But when you include the fact that the price of wood has doubled since last year it's a little bit unreasonable to say that the massive increase in revenue is due strictly to demand side. More than likely they increased wood prices is to make up for any lack in profits they would have gotten and now they don't want to lower them because they see how much more money they're making. Everything I shared with you is because a friend at work noticed this with west fraser. I wanted to confirm that this was a market wide phenomenon. I think it is safe to say that the increase in wood isnt market force related but rather artificially inflated reasons. Let me know what you think in the comments. This is my first time ever sharing research I did and If I missed a crucial step I would love the critique. If I get good at doing this I will probably submit more findings I have in the future. Thank you.   submitted by   /u/chumbawamba56 [link]   [comments]
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  10. Lumber Alternatives? (30/03/2021 - Reddit Stocks)
    With the cost of lumber on the rise I am wondering if anyone knows of any solid companies that provide lumber alternatives. I did a little research and found some smaller companies working with hemp lumber, but am hoping someone knows of a company focusing on this at a larger scale. Any thoughts would be appreciated.   submitted by   /u/DoU92 [link]   [comments]
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  11. What causes frequent forest fires? Uttarakhand reports 45 incidents in 24 hours, seeks centre help (05/04/2021 - Financial Express)
    In addition to Uttarakhand, forest fires have also been reported from other dense forest vegetation states like Madhya Pradesh, Himachal Pradesh, Nagaland-Manipur border, Odisha among others since the beginning of this year.
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  12. So with the whole Lumber/Wood shortage going on, is there any Lumber stocks or ETF's that ya'll are into? (30/03/2021 - Reddit Stocks)
    Was just watching a Dave Ramsey video about a person asking questions on the housing market, and part of what was mentioned was about Lumber/wood. ​ I checked out $LL and its up 372% from the last year. Any of ya'll doing any plays on this or have some solid DD on it?   submitted by   /u/No_Cow_8702 [link]   [comments]
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  13. Russia Exports of Lumber CMLV (13/02/2021 - Trading Economics)
    Exports of Lumber CMLV in Russia increased to 4316.50 USD Million in December from 3974.10 USD Million in November of 2020. Exports of Lumber CMLV in Russia averaged 1228.63 USD Million from 1994 until 2020, reaching an all time high of 4506.80 USD Million in December of 2019 and a record low of 25 USD Million in January of 1994. Russia accounts for Exports of Lumber using cumulative values for each year (CMLV). This page includes a chart with historical data for Russia Exports of Lumber CMLV.
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  14. Italy Imports of Agriculture Forest & Fishing Products (20/03/2021 - Trading Economics)
    Imports of Agriculture, Forest & Fishing Products in Italy decreased to 1130.84 EUR Million in January from 1264.82 EUR Million in December of 2020. Imports of Agriculture, Forest & Fishing Products in Italy averaged 1180.46 EUR Million from 2014 until 2021, reaching an all time high of 1409.42 EUR Million in October of 2019 and a record low of 880 EUR Million in August of 2014. This page includes a chart with historical data for Italy Imports of Agriculture, Forest & Fishing Products.
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  15. China Imports of Logs & Lumber (13/03/2021 - Trading Economics)
    Imports of Logs & Lumber in China increased to 2369000 USD THO in February from 1404800 USD THO in December of 2020. Imports of Logs & Lumber in China averaged 1535468.49 USD THO from 2014 until 2021, reaching an all time high of 2369000 USD THO in February of 2021 and a record low of 821655 USD THO in February of 2015. This page includes a chart with historical data for China Imports of Logs & Lumber.
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  16. Lumber shortage? Haven't heard about this nearly as much as steel shortage (11/05/2021 - Reddit Stocks)
    What's up with the lumber shortage, and 2. how does it affect various stocks? I don't see anyone talk about this, but we have /r/Vitards for steel, yet it feels a similar situation. And to think about it, what's up with semiconductors? 3) Okay so in general, there's a shortage of product (steel, lumber, semiconductors), I'd like to understand as a relatively new investor, how to use that information to inform my decisions about companies within those sectors?   submitted by   /u/salfkvoje [link]   [comments]
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  17. Delaware Investments Dividend&Income Fund declares $0.0623 dividend (03/03/2021 - Seeking Alpha)

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  20. Western Forest Products reinstates quarterly dividend (19/02/2021 - Seeking Alpha)

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  21. Japan Exports of Wood Lumber & Cork (03/04/2021 - Trading Economics)
    Exports of Wood, Lumber & Cork in Japan increased to 2331.74 JPY Million in February from 1629.92 JPY Million in January of 2021. Exports of Wood, Lumber & Cork in Japan averaged 576.38 JPY Million from 1983 until 2021, reaching an all time high of 2531.34 JPY Million in October of 2020 and a record low of 143.49 JPY Million in September of 1986. This page includes a chart with historical data for Japan Exports of Wood, Lumber & Cork.
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  22. Japan Imports of Wood Lumber & Cork (27/02/2021 - Trading Economics)
    Imports of Wood, Lumber & Cork in Japan increased to 26115.07 JPY Million in January from 21986 JPY Million in December of 2020. Imports of Wood, Lumber & Cork in Japan averaged 56229.57 JPY Million from 1983 until 2021, reaching an all time high of 114023.74 JPY Million in June of 1993 and a record low of 20903.07 JPY Million in December of 2009. This page includes a chart with historical data for Japan Imports of Wood, Lumber & Cork.
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  23. Italy Exports of Agriculture Forest & Fishing Products (17/04/2021 - Trading Economics)
    Exports of Agriculture, Forest & Fishing Products in Italy increased to 678.31 EUR Million in February from 633.03 EUR Million in January of 2021. Exports of Agriculture, Forest & Fishing Products in Italy averaged 395.03 EUR Million from 1991 until 2021, reaching an all time high of 751.75 EUR Million in March of 2017 and a record low of 139 EUR Million in January of 1991. This page includes a chart with historical data for Italy Exports of Agriculture, Forest & Fishing Products.
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  27. Chennai urban forests: New Miyawaki forest set up in the city (15/02/2021 - Financial Express)
    In Chennai, a new Miyawaki forest near the Secretariat has been added by the Greater Chennai Corporation.
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  28. MPPSC State and Forest Services Examination postponed due to covid cases surge in Madhya Pradesh; check new dates (01/04/2021 - Financial Express)
    The MPPSC state and forest services examinations were earlier scheduled on April 11, 2011
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  41. Summer 2021 starts to set in: Why we are looking at possibility of increased cases of fires (02/04/2021 - Financial Express)
    As per the data of the Forest Survey of India, 54.4% of the forest area in India is prone to occasional fires in the country, while another nearly 7.5% are prone to moderately frequent fires.
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  42. Delaware Investments Colorado Municipal Income Fund declares $0.04 dividend (05/05/2021 - Seeking Alpha)

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