The forestry sector in Canada has certainly gone through some volatile times over the past year. The global economic outlook now looks unsteady, and the U.S. housing market, the key focus of forestry products investors, is caught in the middle.
Real questions remain about the outlook for companies like Western Forest Products (TSX:WEF). Here is my take on this company, from an insider buying perspective.
What is interesting about Western Forest Products stock during the company’s recent union strike and macroeconomic headwinds previously mentioned is the level of buying by insiders.
The company’s CEO and CFO have been accumulating stock throughout this turmoil, signaling a strong belief in a rebound. This stock now trades at an attractive 0.6 times book value multiple, versus a historical price/BU of around 1.8 times.
As with all investments, please ensure you contact a certified financial advisor before making any investment decisions. Insider buying or selling transactions are not necessarily indicative in any way of the future stock price performance of a given company.
Insiders buy and sell stock for a wide range of reasons, many of which are not related whatsoever to the expected future performance of a given stock (e.g. exercising stock options). Please make sure to do your homework with this stock and only engage in an investment or divestiture if the totality of the information gathered warrant such a portfolio modification.
Invest wisely, my friends.
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