Interfor Corp (IFP.TO)

(A Top Pick Jan 23/13. Up 9.22%.)

Not the best but in this juicy sector. It is doing quite well. As long as housing is doing well it is going to go higher. You just have to hold it. Beware because the commodities can turn very fast.

His main play on the recovery in the US housing recovery. Btu it is still early. Could be soft until the spring. Thinks it has higher upside in the long-term.

When he did his analysis of the industry and US housing, he can see that there are legs to the name. Diversifying their business by going into the US. Free cash flow they are going to be able to generate will allow them to pay off debt and make acquisitions.

We have a major bull market in lumber that started in ’09. Thinks we eventually take out the ’11 peak. Make sure if you buy one of these it is a lumber stock and not a pulp stock.

This is mostly a call on the US housing market. Really well-run company on the West Coast with operations on both sides of the border, which takes away the currency risk, lumber duties, etc. Very good balance sheet and very good management. Lumber is breaking out to the upside.

Extremely well capitalized forestry company with operations on both sides of the border, taking away from currency risk. Lumber prices are on a tear because US housing market has bottomed and is starting to show some life.

A pure play lumber stock with operations in BC interior and, importantly, in the Northwest US. Not much affected by the goings on between the Canadian lumber producers and the US producers. What he likes is that for the 1^st time in a long time, the housing market is starting to stir in the US. Lumber shipments are going up. Also, prices are going up because demand is starting to rise and supply is constrained because of the number of lumber suppliers that have gone out of business.