Norbord Inc. (OSB)

This name is levered to US housing. US houses were under built during the crash to a tune of about $3.6 million. The real demand is about $1.6 million annually and we are only clicking away at about $1 million right now. Early signs of recovery are being seen in the UK. OSB prices have started to climb over the last 3 weeks. Quarterly dividend of 7 .5%, which they reinstated, is safe.

(Market Call Minute.) Benefiting from the improving US housing market. Thinks there is more to come.

Reinstituted a dividend and Q2 numbers coming up. Doesn’t show technical signs of improvement. Has seasonality normally from Oct. until April of each year but don’t use that this time. It is just not working. You want to wait until October if you want to buy.

Produces oriented strand board, which is used in housing. Great production operations. Got absolutely hammered in the slowdown in the US and has had a reasonable recovery. Recently reinstituted the dividend at about 7%. Brookfield management (BAM.A-T) owns a good chunk of this stock and they are pretty astute guys. Expects he will be buying this one.

(Market Call Minute.) This is a play on the US housing market. He prefers lumber to oriented strand board.

(Top Pick Aug 10/12, Up 139%) He has trimmed back his position.

Has been a great ride. It seems to be going through a little bit of a consolidation. You have to watch that. If the consolidation level is broken it could lead to a new down-trend. In this case it is about $30.

Effectively a call on the US recovery. He wonders if this area is ahead of itself. Starting to see macros in the US starting to recover. Unemployment is still below. There are a lot of families living within generational structures. He would be a little careful right now as he thinks the valuation is ahead of itself.

Produces oriented strand board (OSB) for housing in North America and Europe. Has started to move and thinks it is going to run with housing in the US.

Great success story and has had a tremendous run capitalizing on the tightness of lumber short-term. Longer term that lumber gap will continue to drive the price higher. Lots of headroom.

Thinks the US economy is going to be stronger than most people think, because of the housing market. This one is pretty much a pure play on the US housing market. Feels it is early in the housing cycle.

The main story on this company is exports to China as they will have a major housing issue. US housing is in recovery. The time to buy these things are when they are down and this one has not enjoyed the move that some of the others have so this would be a pretty good play.

One of the few ways for Canadian investors in the Canadian market to get exposure to a recovering US housing market. One of the largest oriented strand board producers.