Q: What are your thoughts on the lumber industry in general and WFG in particular,would you be a buyer at this time?
Thank you
Thank you
5i Research Answer:
While WFG remains our favourite in the sector, and it likely has good long term potential, we think the timing is wrong. The Iran War has shifted the narrative from lower interest rates to possible inflation and higher rates. This, along with weak job numbers, implies the housing market recovery could be delayed quite a bit. A loss at WFG is expected this year, so we think investors can wait on this one.