Hey there,
Interfor is benefiting significantly for the cyclical uptrend in the price of wood and lumber. It is the main reason why the company's stock price has performed quite well in recent months. In fact, the company is generating to much cash, it announced a special dividend in the amount of $2.00 per share to shareholders of record on May 28.
It just posted record Q1 results and most analysts have upgraded their targets after the quarter. The company is in good financial position with net liquidity of $943M and its capital expenditure program of about $200M will be easily funded by cash flows with lumber at these prices. It has about $377M in unsecured notes as debt and I do question why the company doesn't do an early repayment on this debt during these 'good' times. Perhaps, the penalties don't justify the early repayment - but still a big debt and should the price of lumber drop (which it will eventually), it would have been nice to see it enter the next bear market debt free.
Overall - good company and fundamentals do look strong in the current environment. That can all change however if the price of lumber drops. One look at its 10-year char and you sill see this hasn't been a strong performer - thanks in large part to lower lumber prices.
Mat