Gunns is Australia's leading timber company. The company has lost alot of its gloss as timber prices have come off, but that appears destined to change if the indicated timber prices are any gauge. If we look at the leading lumber futures contract prices, they are close to a low, providing a great cyclical re-entry into the sector. See the lumber price chart in my Commodities Trading Blog.
As for Gunns, we can see that the stock is on a long term uptrend, but is currently undergoing short term selling, so that will provide a better opportunity to enter this stock around $2.80-2.90. Participate in a Google Finance
forum on Gunns Ltd.
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Andrew Sheldon
www.sheldonthinks.com
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