Interfor Corp (IFP.TO)

The weak Cdn$ has been really beneficial to certain industries, and the forestry industry is one of them. The US housing is improving, the US consumer is improving and this makes our Cdn$ very attractive. Thinks this is relatively early days for them.

Sold his holdings to take some profits. The group is one of the larger direct beneficiaries of the weaker Cdn$. Not just the dollar, but all of the stocks have a decent background on the US housing side going forward. Thinks they are going to do well.

57% of lumber produced is exported to the US where they have a strong housing market. They did a new issue not so long ago to buy 4 mills down in the US. They are focusing on the US which is where you want to be.

A classic lumber stock which has very, very strong seasonality. Tends to go higher from around mid-October through until April of each year. From April through to October, it tends to go down. Technically, this has just had a recent break out above a key resistance level and the trend is higher. Everything is positive right through until next April. It is outperforming the market.

He is a bull on the sector. There is not a lot of inventory. Thinks that lumber goes a long way. The demand is global. Chart on the stock shows a strong advance from 2011 and there's nothing to stop it from going higher. Your 1st 52-week high is not going to be your last.

Doesn’t own any right now, but in the past week, especially the way the market has rolled over, he has been looking at the lumber names. There is no better sector that benefits when you got the Cdn$ falling like it is. This one is probably the most levered with the most growth potential so he would be inclined to take this over the West Fraser Timber (WFT-T) at this point. The recent move back down in US interest rates is going to be positive for the US housing market.

(Top Pick Sep 11/13, Up 32.21%) He made a swap to Western Forest Products (WEF-T) recently. It is cyclical so you can’t just buy and hold on to it.

(A Top Pick Sept 11/14. Up 32.69%.) There are only a couple of years out of a decade where you want to own lumber stocks. He had captured this at the start of US housing and the start of lumber prices. He sold his holdings and replaced it with a Top Pick. (See Top Picks)

Likes it still. They are well positioned. Lots of development going on. Some projects are not fully contracted out, but are fully funded so they will improve their cash flow. Increasing dividend slowly and will continue. Buy for long term defensive hold.

Has a lot to do with what the Canadian dollar does. They have done well recently as the Canadian dollar has done well. The Canadian dollar has done the best of its rally for now. There is decent support around $14ish, but rallies will be limited. You are trading-range bound. He is a bit cautious about the prospects for the US housing market.

(Top Pick Jun 12/13, Up 45.32%) Valuations are high so he would be trimming. Remains solid due to cash flows. Premium growth is only visible out to the end of 2015. Don’t put more money into this.

Forest product stocks have exceptional seasonality. One of the few sectors that have double seasonality. They go up normally from October usually until February or beginning of March and then from March to October they go down. Chart shows that it is having some difficulty getting into higher levels. The trend is still there which is positive. Getting close to when you take seasonal profits.

The last year has been very kind to this stock, it is pulling back a little, but not to any alarming degree. Bigger picture looks fantastic.

(A Top Pick Jan 23/13. Up 90.23%.) Wanted something with maximum torque to lumber. His play was on lumber and he didn’t want to worry about any of the other divisions such as paper. Well-run company and they are in a good place in the US.

Like a lot of lumber stocks, this has had a decent run. Had a bump today on their acquisition. This continues to be driven by US housing. When US housing moves, lumber moves. The lower Cdn$ has also helped. Lumber stocks have had a big move but there is still earnings growth in front of them.