Topic: How To Invest

Pat: Would you consider International Forest Products a buy? Thanks.

Article Excerpt

International Forest Products, $4.75, symbol IFP.A on Toronto (Shares outstanding: 47.1 million; Market cap: $223.7 million), produces lumber at nine sawmills. Two of these are in the coastal region of British Columbia, three are in the B.C. interior, two are in Washington and two are in Oregon. In the three months ended September 30, 2009, International Forest’s revenue fell 6.1%, to $105.2 million from $112 million a year earlier. The company earned $9.7 million, or $0.21 a share. A year earlier, it lost $8.1 million, or $0.17 a share. However, the latest results included an after-tax gain of $19 million, or $0.40 a share, on the sale of a property. Without that gain, it would have lost $7.4 million, or $0.16 a share. International Forest’s total debt of $130.8 million is 56% of its market cap. International Forest makes roughly 41% of its sales in the U.S., followed by Canada (30%), Japan (15%) and other countries (14%). Most forestry stocks have…