Thursday, January 24, 2008

Sino-Forest gumption

Canadian forestry stocks have been wet kindling for an eternity. Only TSX-listed Sino-Forest Corp. (TSX:TRE), with its timber harvests in China, has been in our good trend books. The stock has been trending positively since November of 2006 when it first entered the Stock Trends filters as a Pick of the Week at $6.88. Its Bullish trend elevated it to a peak of $26.15 last autumn. TRE faltered in November and amid the January market collapse it has been driven back to its primary trend line (40-week MA). With last week's 11% drop TRE turned Stock Trends Weak Bullish, but it could be in a position to recover from the brutal slip earlier this week when TRE dropped to a low of $15.11 on Tuesday. Today's advance of 4.3% on moderate volume brings the current price back to $18.50. We'll have to see if the stock can gain some traction on the slippery market slopes, but this is a materials stock investors need not give up on yet. A further advance to above $21 will reassure shareholders and help buoy TRE in these troubled waters.
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