Mark Jackson, CFA Canwel Building Materials Ltd. CWX-T HOLD Nov 15, 2005

It broke out just prior to the equity deal they did. The balance sheet is considerably better now. It had improving price momentum. Good return on equity and they beat on their last quarter. It is not quite enough for him to own it yet.

[Caller concerned about over 9.2% dividend]. They are a distributor of wood products in Vancouver. They acquired a distributor in Hawaii. The issue is with the debt levels and payout ratio. There are onetime events like weather events in their favour. But until the debt and payout ratio comes down he would not own it.

The CEO is superb. They are making some acquisitions in the US in hot markets. He likes the outlook. It is a place to park some money. Not a bad investment and dividend in a toppy market. There is commodity risk and weather risk in it, however. (Analysts’ target: $7.50).

Controlled by a Vancouver family who have done a good job of managing. Safe dividend, and he expects good growth numbers. Slightly levered. You're okay to own it. He needs to study this stock more. They have production in California, so he's not sure how tariffs--a nightmare to figure out in general--will effect them. Pays a 7.7% yield

This lumber distributor sells to the large retail outlets. He does not like their debt levels after an acquisition in the US and thinks this is holding the dividend from being increased. The distribution business is very competitive and he would prefer not to hold this.

He thinks it is fairly well run, but is concerned about the sustainability of the high dividend yield – especially in the cyclical sector of building products. He would like to see the debt reduced first. (Analysts’ price target is $7.90)