Q: What is your take on Taiga Building Products?
5i Research Answer:
TBL has been relatively flat and is only up slightly over the last year due to a special dividend the company recently paid. Revenues have been in decline over the last five quarters and the company is closely tied to lumber performance. It is thinnly traded and small cap at $321.74M which makes it less attractive. The balance sheet is solid and it is very cheap at 0.8x book value and 0.2x trailing sales. We think performance and liquidity make it less attractive and would be more comfortable with larger names for lumber exposure.