Last 2 weeks when lumber make all time high, all wood counter goes up. That is because gold suddenly drop also healthcare counter drop. Last week also lumber goes up but all lumber counter stay down because gold & nasdaq up & all focus on these counter also healthcare counter. Now gold go down again & lumber are reaching 800, maybe this is wood time again
With lumber price continue to climb and and price variance will add positively to the group profit without incurred additional cost. This is similar situation in Glove stock ASP keep increase at a handsome rate cause the glove producing counters to rally. Similar situation. Will arise for Timber related counters once being highlighted by IB in coming day as valuation is relatively low with this level of lumber price. Furthermore, majority of timber counters not selling their products advance. A good case study to look into.
Timber Quota for major timber exporter in Malaysia namely Sarawak have their volume reduce by 80% since 2018( google timber volume), hence volume of available timber for export become scarce. This was further cut by current Sarawak state government in recent time which further added to shortage supply situation. Indonesia government also imposed export ban on round logs. All this create supply shortage and would highly likely push price higher. Study on timber counters can be considered timely
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
davidkkw79
5,068 posts
Posted by davidkkw79 > 2020-08-19 07:50 | Report Abuse
I think master wuchang is dumping now ...becareful