Lumber Prices and Demand Surging
Senticore, Inc. (OTC BB: SNIO), reports that its merger partner, Westar South America, has obtained a $990,000 export contract to supply "Pino Caribe" to Viamar Scilla Transport International, Inc. of Ontario, Canada. "During the past couple of months, we have seen an unprecedented increase in the demand of our wood," stated Richard Smith, President of Westar South America.
In fact, the entire lumber industry has been experiencing a surge lately. Jim Carlton's article in the February 26, 2004 issue of the Wall Street Journal reports that prices have spiked during the past few weeks due to an unusually tight wood supply and resurging housing demand. Richard Smith stated, "We have also experienced a strong interest in our product as buyers from all over the world have been calling to obtain more information such as pricing and delivery schedules as well as placing orders."
The $990,000 purchase order is the first order the company has announced since the merger announcement with Westar only ten days ago. In satisfying the terms of the order, Westar will sell to Viamar 30,000 cubic meters of its medium to high grade sawlogs from its operations in Puerto Ordaz, Venezuela, during the second quarter of this year.
"If you are a seller of lumber, it is a very, very busy business now," said Mark Donovan, a marketing vice president for Forest City Trading Group, Inc., a commodities trader in Portland, Oregon, as he was quoted in the Wall Street Journal article referenced above.
The article further reports that domestic lumber prices have been surging due to a number of factors, such as all the Western forest fires last year, causing log supplies to be unusually low today. All this may result in higher home prices in the US. The larger builders such as Toll Brothers, Inc. and Pulte Homes, Inc. will most likely be the least affected as they tend to purchase in bulk and lock in prices well in advance, however smaller builders may feel a larger impact from current price spikes.
About Westar South America:
Westar South America S.A., established in 1994, is a prominent name in the timber industry. The company's assets include 23,200 acres of Pino Caribe (otherwise known as Caribbean Pine) timber plantations, two large sawmills, equipment and inventory. Westar products include furniture, doors, moldings, metric sawn export timber, export logs, decking and industrial materials. Westar lumber has been used by many home builders globally for doors, windows, decking, crown moldings, as well as other components of a home.
About Viamar Scilla:
Viamar Scilla Transport International, Inc., a 28-year-old corporation, is an importer of foods, furniture, ceramic tiles, lumber and machinery as well as being one of Canada's leading freight forwarders. The company has built a network of agents worldwide; ranging from Italy, to the United Kingdom, throughout Western Europe, Africa, the Caribbean and South America. Additionally, they have established agencies in Russia, Poland, Hungary and Romania. After almost three decades, Viamar continues to thrive in an ever-changing marketplace.
About Senticore:
Senticore, Inc. was restructured as a holding company in 2003 to effect the acquisition of businesses and their underlying real estate properties. Today, the company's specific concentration is in the following industries: timber plantations, land development, gas stations / convenient stores, and hotel/motels. Through its most recent merger announcements with Westar South America and Smith Forestal, Senticore intends to become a dominant distributor of Melina and Pino Caribe in the timber industry.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the Company is detailed from time to time in the Company's reports filed with the Securities and Exchange Commission.
Senticore, Inc.
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