York Timber is profitable again


York Timber is profitable again


Published Date: 2021-09-09 | Source: INCE|Community | Author: The Finance Ghost

York Timber is profitable again

York climbed another 7.4% yesterday. When a stock has momentum behind it, it's quite something to behold.

It took serious patience for shareholders before reaching this point though, as York's share price went on a journey that made getting lost in a dark forest sound like an enjoyable alternative to being invested.

Over 5 years, York is only up around 27%, which certainly hasn't rewarded people for the risk taken over a period that long. Year-to-date, the stock is up around 88%.

When you're buying difficult companies, it really is about timing the market, not time in the market.

York is profitable once more, as confirmed via a trading statement for the year to June 2021. In the prior financial year, York reported a headline loss per share of -70 cents. In this period, headline earnings per share (HEPS) will be between 41.30 and 44.69 cents per share.

There's cash to back it up too, with cash generated from operations of over R330 million vs. just R96 million in the prior year.

It will be fascinating to watch how things play out at York now that the company has been the target of shareholder activism. This can happen when a share stubbornly trades at a discount to the underlying net asset value per share for an extended period of time.


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