a quick google search shows that "framing lumber prices" peaked soon after that and proceded to fall about 30% or more. panels were hit harder. many companies that bought heavy in the spring lost a ton because their inventory values dropped so much. i would bet that ECOB's inventory (lumber and panels) values dropped too, which may prompt a write-off.
here is the data from the national association of home builders NAHB: framing lumber prices
my point is this, lumber prices don't matter much to ECOB if they are now only selling the coating as they recently reported as their new strategy. also, it doesn't look like lumber prices follow housing starts that much, except during the 2005 housing bubble. it is a supply issue more that housing starts.
ECOB needs demand for its products, which it seems to be growing lately. they also need to reduce spending that has been 3-times revenues in some quarters. in conjunction, they need financing to grow.
the stock is up a lot in the last 3 months. keep it real. cautiously.
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