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Tuesday, January 25, 2011

Welcome to Canfor Pulp Products Inc. (CFX) in my online future trading brokerage!

Canfor Pulp Products Inc. from the Toronto stock exchange market is my latest financial trading. I had acquired 100 stocks of Canfor Pulp Products Inc. and I am still very happy with this new acquisition. Canfor Pulp Products Inc. Toronto stock exchange quote is CFX.

To make a long story short, I am coming from the north of New Brunswick. The north part of New Brunswick is a bit poorer than the south. The north rely mostly on natural resources to survive. And forestry is an important sector of employment for natural resource jobs. So when it come to forest, pulp, paper and other, I am very close to all that as the vast majority of my family had been employed in that specific sector. I know that the market is very rough in the market pulp. Why can't New Brunswick duplicate a company like Canfor Pulp Products Inc. (CFX) to create jobs and do something right with our natural resources? I don't have a clue. There's only one Canfor Pulp Products Inc. (CFX) and I am now a holder of it! Without knowing that much of Canfor Pulp Products Inc. (CFX), I am already a very proud stockholder.

Before it's conversion in January 2011, Canfor Pulp Products Inc. (CFX) was an income fund known under the name of Canfor Pulp Income Fund (CFX.UN). As Canfor Pulp Income Fund (CFX.UN), Canfor was among those high yield income funds. Canfor Pulp Income Fund (CFX.UN) was paying an annual dividend of 3$ per unit. Canfor Pulp Income Fund (CFX.UN) had paid it's last dividend as in income fund on January 14, 2011.

While trading under Canfor Pulp Income Fund (CFX.UN), the company had declared a special dividend, which been named as a "supplemental cash of distribution" of 30 cents per unit for the units own on date of December 31, 2010. Back in the times, Canfor Pulp Income Fund (CFX.UN) were among the stocks paying highest dividends. (I know, I had missed some very good stuff!!!).

Myself, I like everything that go quick, I don't like to spend too much times over something. I like quick fast deal and voilà. And the result of what they are: interesting. That's the word I will use to describe my very own financial score: interesting. As you might had read previously, I first taught that our Canfor, the newly Canfor Pulp Products Inc. (CFX) was still paying a 3$ per stock, but it's not the case. I went too quickly on the blablabla reading I guess.

Because of their conversion into a corporation, many companies, just like Canfor Pulp Products Inc. (CFX), had to decrease their dividend distributions. Bell Aliant Inc. (BA), Davis + Henderson Corporation (DH) and Yellow Media Inc. (YLO) are among those companies, all ex very high yield income funds. A dividend distribution cut is always hard to take. But a distribution cut do not necessarily mean a decrease in the value of the stock. The stock value of Canfor Pulp Products Inc. (CFX) did not decrease following its conversion into a corporation set up. It remain relatively stable. Why? Many factors, including this one: the company stockholders had decided to stick to what they have invested in Canfor Pulp Products Inc. (CFX) no matter what. New company stockholders had came in also, etc etc etc. But also, I am very tempt to say that Canfor Pulp Products Inc. (CFX) is one of those very well manage companies, just like one of my very favorite: Just Energy Group Inc. (JE).

Following it's conversion, Canfor Pulp Products Inc. (CFX) still have an interesting dividend yield of 10.26% (from what I calculated and also coming from a reader comment). The annual dividend distribution is of 1.40$. This do not include special dividend. I am also very tempt to say that Canfor Pulp Products Inc. (CFX) could probably pay a special dividend for the financial year of 2011 when time will come.

Canfor Pulp Products Inc. (CFX) will proceed with the payment of its dividend on a quarterly basis. The first dividend distribution of Canadian stock Canfor Pulp Income Fund (CFX.UN) as Canfor Pulp Products Inc. (CFX) will be made just later on in 2011. The initial dividend had been established so far at 35 cents per quarter. According to Canfor Pulp Products Inc. (CFX), the first quarterly dividend is expected to be declared on or about April 30, 2011 regarding its dividend payment.

With 1.40$ in annual dividend distribution + maybe a special dividend, at a dividend yield of 10.26%, Canfor Pulp Products Inc. (CFX) represent a good commodity investment in a Canadian specialty sector: certified forest products.

Looking forward to buy stocks online? Than, pick the Canadian stock Canfor Pulp Products Inc. (CFX) in your online broker day trading. Purchase stocks of Canfor Pulp Products Inc. (CFX), you won't regret it.

11 comments:

bilal said...

Hi!

This sounds like a very interesting stock, especially since I'm primarily interested in commodities.

Question though... There's another "Canfor" with the symbol CFP. What's the relationship between CFX and CFP? I can't find any website for the CFX symbol company, but I did find it for one with the CFP symbol.

Sunny said...

CFX is the quote.
I don't know the other one.

Anonymous said...

cfx - canfor's 3 pulpmills + paper
machine in prince george b.c..this
formed cplp trust.

cfp - canfor's woodlands,sawmills etc

cfp controls 50.2% of cfx which is
now cppi( canfor pulp products inc )

Anonymous said...

Very interesting article. You have researched well. I have worked for this company for 33 years and its' future is very bright with strong, forward thinking management and significant capital investment happening for environmental improvements, and pulp and energy enhancements.

Sunny said...

Thanks for the comment! I had purchased my units when the price was at 14$ and something. It's now exceeding 17$ per stock! Very exciting company to hold and within a few weeks, very awesome profit! I really like CFX. I wish to be able to hold for the long term. Great dividend too!

Anonymous said...

do you no the average cost per share since 2004?i need it for tax purposes
thankyou have a nice day

Anonymous said...

It looks like CFX is no longer shelling out dividends. I bought the stock fairly early on this year as well, but I have to wonder if they're no longer giving out dividends because they're no longer an income fund.

Still waiting for the May 2 report, but any thoughts?

Anonymous said...

You're absolutely right, Sunny. I also worked for pulp co (CFX) for many years and bought the Trust prior to the new rules governing Trusts. The split to a Corp and Trust, with CFP owning just over 50% of the trust (CFX) was a brilliant move even though the Trust rules changed. Management at CFX/CFP is top drawer, I assure you. Following the Trust change and the downturn in pulp prices and stocks in general, I averaged down to near bottom! I now own the eqivalent number of shares for CFX and CFP. CFP doesn't pay a div but CFX yield is around 10%. Rationalizing, I can accept roughly a 5% based on present prices for both cos. In anyone's eyes this is a good dividend with a div tax credit now! I used to have details in my head but CFX has as good a cost base as any NBSK prod in the world, the best fibre basket in the world and is in the top 5 among NBSK producers' capacity. Their market acumen is tremendous-I take part credit for my time there! Pulp markets are firm, capacity for NBSK is better managed, no new mills are planned and the high cost prodrs will continue to diminish and some interesting alts for NBSK have appeared based on the dissolving market. I feel that CFX is fairly fully valued but CFP has better legs in the near term; a new paradigm for BC wood-good potential for growth in Asia and less dependence on US housing.

Sunny said...

Hi! Thank you for your comment. It add some valuable information and it simply confirm what I knew from the start: CFX is a good investment!

Anonymous said...

I believe you failed to show much knowledge of your own. You've just regurgitated someone else's stuff. Proven by not answering questions. What kind of advisor are you?

Anonymous said...

This is worthless, you have no idea what you are talking about.

 

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