Interfor Corp (IFP.TO)

This is a cyclical stock and is not like a growth stock that you can own forever. Their cycle is largely related to the US housing market although more and more, lumber companies are sending lumber to China and Japan. The US housing market still has a ways to go. Sold half his position at around $14. Still looking to buy for new accounts. If you’ve owned this for a while and have doubled or tripled your money, take some of that off the table but keep your core position.

Really likes this stock. Doing everything he expected them to do. Doesn’t expect it be a smooth, straight right to his target of $18-$19 over the next year. Considering taking some profits on this and then re-entering at around $13.50-$14. Lumber prices can be volatile but this does have quite a bit of upside. Still seeing pretty solid demand for lumber exports to Japan and China. (See Top Picks.)

Does not get affected with border disputes on lumber because they have operations on both sides of the boarder. He may want to take some profits soon to lock in profits. US housing market is still in its infancy. Wait a little before trimming.

(Top Pick Nov 2/12, Up 85.47%) Believes there is further upside in this. The housing recovery in the US and demand in China both have a long way to go. He may take some profits a year or two out.

Reported this week and essentially was in line. This is a seasonably weak quarter, so the expectation generally was that, with the lumber price pullback, earnings across the board were going to be weak and they weren’t. Still thinks the trend is intact and his one-year target would be $14.50. He would be a Buyer under $12.

Because of the beetle problem in BC, their supply-side is down and there is pretty good growth in demand coming out of China and Japan. The longer-term story for these lumber companies is pretty good. Housing in the US is slowly get better and China will continue to be pretty strong.

He has been a bull on lumber for about 2 years. Lumber is one of the commodities that is lagging in the broader commodities. The bottom for lumber was in 2008, which was followed by the 1^st leg advance that terminated with the Japanese tsunami. It corrected down and now we are moving on to new highs. There is also an ETF iShares Timber & Forestry (WOOD-Q), which is acting very well. This is one where you have to be. This is one that he feels is going higher.

(Top Pick Sep 24/12, Up 84.82%) This was because he thought the US housing market would take off. He thinks there is further upside. Great balance sheet and on both sides of the border.

Thinks lumber is a better play than OSB right now. With OSB, you are just playing the US housing recovery. If you play lumber, you’re playing the US housing recovery, and you are playing China as well. Feels there is stronger growth from housing, there. (Also look at Tricon (TCN-T) comments.)

Had a great run, backed up a little bit, but now had a big run up again. Buying at this stage in the cycle is not attractive. Great stock and great company but at this price. It is going to be a little challenging.

Recent acquisitions make it half US and half Canadian lumber. Canadian side, in BC, goes to Asia. The purchases of lumber mills are all in the southeast US. Good balance sheet. Family has announced they are renouncing their multi-voting stock, so the company is now open to a possible takeover. Feels that $15-$16 would be the takeover price, which could be bonus.

(A Top Pick August 29/12. Up 92.04%.) Feels that housing is one of the major drivers of the US economy and will continue to be. Thinks we are just in the sweet spot at this point. Also, lumber exports are growing to China as well. This stock is going to be converted to one class only instead of Voting and Non-Voting. Still a Buy.

Have been very good at consolidating the space. Have some assets up for sale now.

Chart shows this has been in a strong uptrend. As long as you don’t break the uptrend, and you are certainly nowhere near that, you should stay long the stock. For an entry point, you wait for a test of the trend line.

(A Top Pick Jan 23/13. Up 10.43%.)