(MENAFN- Baystreet.ca)
Goodfellow Inc. (TSX:GDL) is a Quebec-based company that is engaged in re-manufacturing and distributing of lumber products and hardwood flooring products. Shares of Goodfellow have plunged 29% in 2018 so far. The stock reached a 52-week low of $5.65 in trading last week.
Taking a glance at its technicals, Goodfellow stock has climbed out of oversold territory. It currently boasts an RSI of 35, which is above levels that are considered technically oversold going by its Relative Strength Index. What about its earnings so far in 2018?
Goodfellow released its third-quarter results on October 4. In the first nine months of 2018 the company reported net income of $2.4 million or $0.28 per share compared to a net loss of $1.6 million or $0.19 per share in the prior year. Sales in Canada and the United States declined 9% and 8%, respectively. Export sales also dropped 2% on lower hardwood demand in Asia.
Looking ahead, Goodfellow is facing several headwinds in the industry. Housing starts in the United States have moved forward at a slow pace and are projected to continue along this trend from 2018-2022.
Economic turbulence could worsen this forecast. Fortunately, housing starts in Canada beat expectations in November but are expected to be tepid going forward as the industry aims to keep a lid on supply.
Stormy economic conditions have the potential to create more downward pressure for Goodfellow going forward. Investors should look elsewhere in late 2018.
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