Norbord Inc (OSB.TO) Buy, Sell or Hold

Norbord Inc (OSB.TO)

56.97

-0.69 (1.20%)

as of Feb 2, 2021, 9:00:00 pm Market Open.

34 watching

WEAK BUY

Doesn't follow the name super closely. Positives in the industry. Good growth trajectory. Still a good name but volatile, as it's tied to the price of the commodity. Low interest rates should benefit it.

DON'T BUY

It's been plummeting. But they are addressing overcapacity issues, namely pulling back on a mill in Georgia. This may help the stock price.

DON'T BUY

This was a great performer in 2017-18, but with housing starts--and the economy--slowing in the U.S., it's under pressure. Tariffs to lumber didn't help. The yield pays over 5%, but in this late part of the cycle, OCB is likley not covering the dividend every quarter. They should trim the dividend. He prefers WEF for their dividend and high-end niche. That said, you could pick away at this sector when it's been beaten up like this.

COMMENT

The US housing market has been lack luster for the last year. Yet the consumer is strong. But they are spooked from '08 when they almost lost their house. It is never wrong to take a profit. You could wait for it to pull back and then buy back.

DON'T BUY

It's a cyclical. Trade it, not an investment. $45.54 is his model price. Pays a good dividend. This goes lower in a recession. Buy around $28, but sell if it falls below that.

DON'T BUY

The OSB manufacturer for roofing and flooring. Prices for products has collapsed and new capacity is coming on-stream. She would not be buying a commodity based stock like this. If you are long already and the US economy continues to grow and interest rates do come down there may be upside in the housing sector. The over capacity issue is an overriding concern for her, however.

DON'T BUY

OSB-T vs. CFP-T. Looking at a long term chart of lumber futures, we are getting back to levels from when the economic levels were much weaker. Individually he is not sure that the prices are washed out. There may be more downsides in the more economically sensitive names.

HOLD

The book value has been steadily sliding lower. He thinks there could be upside to $40, but watch for support at $31 -- if it breaks below that watch out. The economy is questionable and the US housing market is in the sewer.

BUY

He thinks we have seen house prices turning the corner. He likes it here. March sales beat expectations in the US. Prices of houses is what drives this stock. Variable dividend that pays you to wait. If you think that we are going into a recession (he doesn't) you don't want to own this name.

HOLD

For longer term, if you hold it, not a bad time to be averaging down. Need strong rebound in US housing market to get material lift from here. But don't put new money in.

WATCH

US housing looks cloudy? OSB is tied to new home starts in the U.S. Well-run company that generates a lot of free cash flow in different times of the cycles. Good capital allocators. The best time to buy this is when everyone hates it and commodity prices are low, like now. If you think the US economy will stay strong and that US housing will pick up, then lumber and stocks like OSB will pick up. Looks closely at OSB now.

COMMENT

A play in US housing -- making drywall for housing. Lower interest rates help this space. They are not subject to the same duties as lumber companies. He is surprised the stock is being treated like a lumber company.

PAST TOP PICK

(A Top Pick Mar 21/18, Down 8%) The world's largest producer of particle board. There has been a slow down in US housing. He has not seen a real bottom in lumber fundamentals yet. He sold it in June for a 3% loss.

BUY

Good for dividends in the next 5 years? A good company. He just bough back into this. It's a play on North American housing. They also have a European business. There are concerns about US housing slowing, though. They pay a good, adjustable dividend based on business performance, which has decreased recently, but is still around 4%. They're good capital allocators and are buying back a lot of shares which shows self-confidence.

COMMENT

A lot of the forestry stocks had a correction in December. OSB-T have operations in the UK also. He can't comment on the sustainability of the dividend but if you want torque and believe housing will re-accelerate, then this would be a name to buy.

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Norbord Inc (OSB.TO) Frequently Asked Questions

What is Norbord Inc stock symbol?

Norbord Inc is a Canadian stock, trading under the symbol OSB.TO (previously OSB-T on Stockchase) on the Toronto Stock Exchange (OSB-CT). It is usually referred to as TSX:OSB or OSB.TO

Is Norbord Inc a buy or a sell?

In the last year, no analyst issued a Buy, Sell, or Hold rating on OSB.TO (previously OSB-T on Stockchase) on Stockchase. Read the latest expert commentary for Norbord Inc.

Is Norbord Inc a good investment or a top pick?

Norbord Inc was recommended as a Top Pick by Michael Simpson, CFA on 2019-01-17. Read the latest stock experts ratings for Norbord Inc.

Why is Norbord Inc stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts' recommendations for Norbord Inc.

Is Norbord Inc worth watching?

Norbord Inc is followed by 34 investors on Stockchase and is a trending stock that is worth watching.

What is Norbord Inc stock price?

On 2021-02-02, Norbord Inc (OSB.TO) stock closed at a price of $56.97.

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