4 Canadian Lumber Stocks with Strong Price, Volume Momentum

The Canadian lumber stocks on our list today have generated substantial returns with strong volume so far in 2018

SmallCapPower | February 1, 2018: The sixth round of NAFTA talks concluded on January 29. The Trump administration may rework or exit NAFTA, which could have serious effects on the longstanding softwood lumber dispute. That being said, the Canadian lumber stocks on our list today have generated substantial returns and trading volumes over the past month.

Western Forest Products Inc. (TSX:WEF) – $2.80
Forest & Wood Products

Western Forest Products is a Canada-based lumber company operating in British Columbia and Washington state. The Company produces 1.1 billion board feet/year (Bbf), primarily of red cedar and Japan specialty. Its timber resources are largely unaffected by the mountain pine beetle, a pest that threatens to kill large proportions of western forests.

  • Market Cap: $1,108.4 Million
  • YTD Total Return: 14.3%
  • Average Daily Volume – 30 Days: 613,477
  • Average Daily Volume – 100 Days: 758,699

Canfor Corp. (TSX:CFP) – $29.42
Forest & Wood Products

Canfor is a Canada-based lumber company operating across Canada and the US. The Company produces 5.5/year Bbf from a variety of trees. Canfor also operates 24 sawmills, with a pulp/paper capacity of 1.5 million tonnes.

  • Market Cap: $3,811.7 Million
  • YTD Total Return: 18.7%
  • Average Daily Volume – 30 Days: 255,323
  • Average Daily Volume – 100 Days: 270,411

Interfor Corp. (TSX:IFP) – $23.37
Forest & Wood Products

Interfor Corporation is a Canada-based lumber company operating in Canada and the US. The Company produces 3 Bbf/year from a variety of trees, 65% from its US operations and 35% from its Canadian operations. Interfor plans to expand production by another 150 Mbf by Q1 2019.

  • Market Cap: $1640.2 Million
  • YTD Total Return: 10.7%
  • Average Daily Volume – 30 Days: 182,247
  • Average Daily Volume – 100 Days: 223,994

Conifex Timber Inc. (TSX:CFF) – $6.24
Forest & Wood Products

Conifex Timber is a Canada-based lumber company operating in Canada and the US. The Company produces ~500 Mbf, primarily of conifex lumber. CFX completed construction of a sawmill in El Dorado in October 2017, and aims to establish a lumber mill in Arkansas to take advantage of lower duties.

  • Market Cap: $165.3 Million
  • YTD Total Return: 13.5%
  • Average Daily Volume – 30 Days: 18,226
  • Average Daily Volume – 100 Days: 31,293

Disclosure: Neither the author nor his/her family own shares in any of the companies mentioned above.

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