The forestry sector is one which, historically, has been far too volatile for my liking as a conservative, long term investor.
With so many macroeconomic factors impacting the commodity pieces prices of lumber and pulp, investing in companies like Western Forest Products (TSX:WEF) can feel like a crapshoot. Anyone looking at long-term stock chart of Western Forest Products will see what I'm saying.
That said, insiders at Western Forest Products have been buying over the past year, have been doing so throughout the year long decline we've seen in WEF stock prior to the COVID-19 outbreak. Western Forest Products was hit with a strike which halted operations for approximately eight months prior to the COVID-19 pandemic, making this pandemic a double whammy for investors who have held on for the past couple years.
Now trading at a significant discount to its peers, I see potential value in WEF stock. In times like these, paying attention to insider activity can help to highlight potential value opportunities.
As always, please remember to consult with a certified financial advisor into your own homework before making investing decisions. Insider buying and selling activity is not necessarily indicative of the future performance of a given company’s stock price, and insiders regularly buy or sell positions in companies they own or manage for reasons other than expectations of future stock price performance.
Analyzing insider transactions in a given stock is one tool of many to glean pertinent information to assist in investment decision making.
Invest wisely, my friends.
