Anyone reading the comments here this morning would think the sky has fallen in!!!!
Read the announcement carefully and you can see that in the last update*, RBC sustained limited damage to its own tree growing and nursery operations but this impact update is as a consequence of its customers being severely adversely impacted by the hurricane.
RBC has undertook to update once they have assessed the damage and its impact - which it has done now.
having people on the ground (as it were) in the US gives them the advantage of near instantaneous market intelligence gathering. I'm surprised it took then so long to identify this damage. Suggests to me they are a long way from touching their customers.
Wow! Anyone reading the comments here this morning would think the sky has fallen in!!!!
I hope your optimism is well rewarded Balance.
However, if you look at the TA, you'll note RBC is in 'death cross' territory and this (along with today's news) signals possible further declines or a continued SP drift sideways. Any more bad news out of the USA or more Bear market shenanigans then I suspect there will be further SP losses.
I always like to prune weak stocks from my portfolio early, so I'm fully out now. I'll revisit RBC when/if there is more positive news or the start of an uptrend.
However, if you look at the TA, you'll note RBC is in 'death cross' territory and this (along with today's news) signals possible further declines or a continued SP drift sideways. Any more bad news out of the USA or more Bear market shenanigans then I suspect there will be further SP losses.
I always like to prune weak stocks from my portfolio early, so I'm fully out now. I'll revisit RBC when/if there is more positive news or the start of an uptrend.
GLH and DYOR.
TA on a stock like RBC is as useful as tits on bulls.
I've been waiting for the update to market on this and I must admit the update was better than I thought. Last year Rubicon said their plantations weren't terribly damaged (a great result) and that EBITDA shouldn't be affected (just not believable). If you've been following Hurricane Michael, it was the biggest hurricane to hit Florida in 50 years. 50 years! In the months since, respective forestry organizations in the states hit have put the amount of forestry land damaged at over 5m acres. Florida and Georgia are each at over 2m acres each. So with that much damage of course land is going to be affected and the first job for forest owners will be to clear the enormous amount of damage and try to salvage whatever wood they can and get it to market. That salvage operation will mean that some will just flag plantings this year - they need to get $ in. So only a US$1m hit is pretty remarkable I think. I agree with others on this site that the notice today does show to me that information at the bottom of the organization (the forest advisors of Arborgen must have known this for a while) isn't flowing to the top and that's a concern. I also think it shows the weakness of the board in that they are now heavy with skilled investors but not skilled forestry people (Mr Fletcher included) who've got there hands dirty at one stage or another. A bit like the Fletchers board of the last couple of years alas. Forestry people would have known there would be an impact. However those concerns aside, if you're in Arborgen for the long haul (I am having bought in 2 years ago) that damage to land only means greater plantings in the years ahead than would otherwise have occurred. I'm suspecting/hoping Arborgen are not pointing this out however as it would be insensitive to those affected and not help long term on the ground relationships.
Whats the difference between a Financial COntroller and a CFO in a company the size of RBC. Only asking since Alex Brown has left one job and been appointed to the other.
Whats the difference between a Financial COntroller and a CFO in a company the size of RBC. Only asking since Alex Brown has left one job and been appointed to the other.
My favourite from the announcement is this gem...: "Further announcements may be made in due course"...
Wow...!! Really...? Is that so...?? Surprised they didn't make the announcement price sensitive...!!!!
Whats the difference between a Financial COntroller and a CFO in a company the size of RBC. Only asking since Alex Brown has left one job and been appointed to the other.
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Originally Posted by Balance
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