Taiga Building Products
Following on from our analysis of Avarga, we dive into its main subsidiary, which is listed in Canada – Taiga Building Products (‘Taiga’).
Since Taiga is Avarga’s dominant asset, most of the economic analysis is redundant – except for some additional information below.
Taiga is the largest independent wholesale distributor of building products in Canada (comprising 78% of sales). In addition, it sells to the US and parts of Asia.
Its inventories comprise lumber products (70%), allied building products (18%), panel products (11%) and production consumables.
The company recently reported losses for the quarter ending September (which wasn’t available for Avarga) – this seems primarily due to rapidly falling prices of lumber, set against relatively higher inventory costs accumulated earlier in the year.
Want to read more?
Subscribe to www.analyzingbargainstocks.com to keep reading this exclusive post.
Subscribe Now