Buy SIgnal on Weyerhaeuser Company (WY-US)

15/10/2020

We had an Enter Long signal on October 15th 2020, triggered by our system on WY-US, Weyerhaeuser the US wood product manufacturer.

Weyerhaeuser is a $21.9 Bn market cap, and specializes in the manufacture and marketing of wood products. Revenues is split between wood products (70% of sales): boards, panels, profiles, etc. In addition, the group is developing a construction materials distribution activity; and forest products (25%): trees, logs, chips, etc. The remaining turnover (5%) relates to management of forest assets and natural resources. The revenue is mainly derived from United States (87%), Canada (7%), Japan (5%) and China (1%).

Lumber looks like a more and more interesting material for construction and prices of wood futures have reached an all time high recently. This reflects low interest rates that favor home building and dislocations in the supply chain have limited the availability of wood. The potential for an infrastructure « green « rebuilding initiative in the US is also a trigger.

Short term catalyst: Lumber prices strong momentum.

This signal looks mainly company specific.