" Chicago lumber futures traded near to $1,200 per thousand board feet, amid supply disruptions and a hot housing market. From the demand side, construction companies are hoarding material to avoid shortages. Also, unseasonably warm temperatures are allowing homebuilders to keep their activity fueling the demand for lumber. Meanwhile, supply disruptions remain amid record rainfall in Canada during November and labor shortages in the US. In Canada, floods have affected the transportation system, delaying or making it impossible to ship lumber to the US. In the United States, sawmills faced a labor shortage as workers are unwilling to work in such dangerous conditions at low wages." From trading economics. For comparison sake, lumber was trading at $500 per thousand board feet in September 2021.
The swing between USD and Ringgit has been in the range 4.14 to 4.24 (+/-2%) in the past six months. Impact to FLB is minimal. In fact it probably helps FLB because in the three months of the past six, USD strengthened vs Ringgit before having a small retracement. Lumber spiking by 165% during the same period negates any currency fluctuations.
I remember back in 2015-16 heydays, FLBHD able to ride the US RV boom (about 70% of their plywood is catered to the RV industry) coupled with the strong USD.
Perhaps, the stars have re-aligned again as the 1) US economy is recovering very strongly plus the cash reserves/savings from easy monetary policies hence bodes well for the demand for RV, 2) USD likely to strengthen further due to monetary policy tightening, 3) high Lumber prices (take a look at the 10 yr chart, its shooting towards the moon)
Net cash company primed to make triple return profits for fy22. Factory is at 24x7 production according to management. Fast growing RV market in the US coupled with soaring lumber prices will make the market pay attention very soon. Price has held steadily sideways since the last spike in December. Vcp set up coming along very nicely.
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....