Canfor Pulp Employee Huddle Good News

Saturday, June 27, 2009 06:26 AM

Prince George, B.C.- When Canfor Pulp Limited Partnership called it’s employees and their significant others to a meeting this past week, there were some who feared the worst.

Turns out there was no need to worry, as the employees received news showing Canfor Pulp is in pretty good shape. “They told us they have about $500 million dollars worth of capital projects on their three year wish list” says one employee who did not wish to be identified. “It looks as though they are in much better shape than anyone thought.”

Employees came away from the 2 hours plus session feeling relieved. “It put a lot of us at ease” says one attendee, “I mean there were pensioners who showed up because they were worried about what was going to happen, but we all feel like the company has positioned itself really well.”

During the session, employees were told there are no plans for curtailments and no plans for any cuts to pensions or wages. The company indicated some confidence in being able to qualify for up to $120 million dollars over the next three years through the environmental package being offered to Canadian Pulp and Paper producers.

Canfor Pulp Limited Partnership will release it’s 2^nd quarter results in late July.

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Posted on Saturday, June 27, 2009 06:26 AM in News by 250 News

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Comments

Posted by: DPJ on June 27 2009 11:04 AM

Finally good news in Prince George.

Posted by: hammmy on June 27 2009 11:55 AM

Wish there were monies for my old saw mill!

Posted by: He spoke on June 27 2009 5:34 PM

Well, these are interesting times, and only a well run company is going to survive it. i believe that Canfor and West Fraser makes hard decisions to ensure that the company survives.

Its decision is not going to make everyone happy, but the people who works in the resource field should realize that it is cyclical industry. Make money and save it when you can. Thus, this is the reason why I would never agree with the public secotor employees should not be paid more than people in the private industry.

Posted by: charles on June 27 2009 6:19 PM

Before anyone who directly or indirectly gets an income from Prince George's pulp mills (and I include the City of Prince George in this) thinks this "good news" is as good as having money in the bank, and it is "safe" now to go out and spend a whole bunch of money, I would strongly advise them to check out the stock price chart of this company over the last 2 years to get a reality check. According to the following Google Finance chart, approximately 2 years ago the stocks of this company were trading at $16.25, and yesterday they closed at $2.35. If my high school mathematics hasn't failed me this is an 85% drop. It looks to me like investors (the people with skin in the game) do not see a very rosy future for this company.

The following is the link to the stock price chart for this company on Google Finance. Please note, after clicking on this link, you have to click on the "settings" box which is located on the left hand side of the page (right under where it says 2.35), before the 2 year stock price chart comes up on your screen.

http://www.google.com/finance?chdnp=0&chdd=0&chds=0&chdv=0&chvs=maximized&chdeh=0&chdet=1246141960227&chddm=291686&q=TSE:CFX.UN&ntsp=0

Posted by: foxtrapper on June 27 2009 11:30 PM

As Harper would say: 'I think there's some good opportuniys out there'.

Posted by: Eagleone on June 28 2009 5:45 AM

Interesting... wonder where they will get all the wood chips from to keep three pulp mills going?

Posted by: Chester on June 28 2009 3:25 PM

If one thinks that Canfor will not be in business a year from now, pull the pin now, sell your shares now and don't look back.

On the otherhand, if you believe $2.35 is substantially below the book value of the company and this would be an opportunity of a lifetime, then buy Canfor shares. They have laid off, cut back, shored up their balance sheets and have positioned themselves to survive this downturn. When the market turns, do you think they will be profitable much sooner? Or, because they have survived and maybe many others haven't, do you think that they may pick up a few more customers for their products? I do. Last man standing will be holding all of the marbles. Don't fool yourselves. Canfor has a strategy. Staying in business is probably one of them.

Posted by: Born in BC on June 28 2009 6:13 PM

There is no believe or not believe regarding whether or not it is above or below the book value. This is a simple calculation that anyone can do (equity/shares or units).

You are right about the rest of the post though. Canfor has been agressive in protecting its balance sheet while other companies have taken a business as usual approach (West Fraser). Canfor has made tough decisions when it has had to. In the end it will make all the difference.

Posted by: PaysHisOwnWay on June 28 2009 8:34 PM

Posted by Born in BC - "There is no believe or not believe".

Good call Yoda!

Posted by: Chester on June 29 2009 8:11 PM

The recent market correction up until March 9th indicated that the market was oversold. This means that perfectly good company's found their shares undervalued by 30% or more. This has nothing to do with the actual book value of the company.

It means that so much selling caused the share prices to dive. When the last person sold, the prices hit bottom. It's all about buying and selling, not about the value of the company. (over the short term)

Investor behavior has more effect on the short term performance of the market than economics or any calculations for that matter.