Canfor could resume its bullish trend.

The company has strong fundamentals and benefit from qualitative Surperformance ratings. Revenues are increasing, +32% since 2011 and should continue to grow; +10% per year until 2015. Moreover, margin is improving. Net margin came at 7.2% in 2013 from 1.2% one year before, and are expected to progress of 40% in 2014, reaching 10.1%. Furthermore, EPS revisions from Thomson Reuters analysts are positive with an 2014 EPS estimated at CAD 2.5, +55% improvement from 2013 one. Finally, the company valuation levels are interesting, with a P/E ratio of 10.23 for the current year proving the share progression potential.

From the technical viewpoint, the stock is in a strong long term bullish trend but the last consolidation phase has brought back the share price near a support line. The bullish could resume launching the stock back to its recent highs.
Active investors could take a long position at the current prices. The first target will be set to the CAD 27.8 resistance, then investors could aim the CAD 29.8. A stop loss will be place under the entry point, protecting from a failure of the strategy.