Update: Doman Building Supply Mar 2 2022

Summary: Buy CWXZF on March 3rd, 2022, or anytime before 1st Quarter 2022 earnings come out — about April. Sell when you’ve made enough or the earnings come out, again, maybe May. If lumber prices continue to go crazy, feel free to hold on. This is a chance to get returns that are disconnected from the returns of the general stock market due to supply/demand and business context that I will expand on in future posts. With higher rewards come risks. Warren Buffet and others think you can decrease your risk by doing your homework. I did mine, with details below. The final choice, and responsibility, to invest is up to you.

Details:

If you followed my advice to invest in CWXZF, then called “Canwell Building Supply” last February and got out in Early May, you did just fine. A lot of that is due to the cyclical nature of Lumber, and the lumber price per 1,000 board feet.

Surprise, it’s been almost exactly a year, and what goes around comes around.

Camwell is going to announce 4th Quarter results tomorrow, March 3rd. They will be good. The next quarter, Q1 2022, will also be good, because the price of lumber is amazing.

Here’s the five year lumber chart, taken from tradingeconomics.com. Notice that 2022 is shaping up exactly like 2021, where a high-price Q4 previous year led…