Western Forest Products Inc. (WEF.TO)

With a company like this, that is restructuring itself, and to have a yield is going to attract more capital. Question is, is it going to be more sustainable institutional capital. Short-term, we’ll see. Longer-term it is a very interesting company. The fact that it pays a dividend now and has a dividend payout ratio that is appropriate and prudent, between 30%-60%, absolutely.

Any company that announces the dividend and starts buying back stock is obviously feeling fairly confident. The forest companies have had a few tough years. This tells you that the US housing is coming back. Sometimes the stocks get ahead of themselves but he feels you should do alright on the stock.

We are seeing a bit of a renaissance in housing in the US. We are going to see a pickup in building. These can be very long term established trends. 5 year cycle.

Reasonably positive on the forest products area. His participation in this area is relatively small and a lot of the stocks have run quite dramatically but he feels US housing side is here to stay and we are going to see more starts. Chinese side is a little more difficult. This one is breaking into new highs and he expects the momentum to continue.

(Market Call Minute.) Great name if you believe in the US housing sector. Sector is recovering, prices are going up and the US investors love this company. As long as that trend is in place, it is going to keep going.

Lesser known name. Problems few years ago and now have a lower levered balance sheet. Hidden assets. Trades at a discount to the group. A name people aren`t as familiar with. Benefit from US housing recovery as well as Japan`s rebuild.

Has had a tremendous run but thinks it is just getting warmed up. This is due to the lumber gap. Looking at production and some of the mills that had been shuttered by the company, there is going to be tightness in the lumber market and demand will drive this for the next 12-24 months.

Likes it. It’s a small position. It has been recapitalized and has new blood. It offers excellent exposure to the recovery in housing and hence lumber markets. At current prices, it offers pretty good value.

Softwood lumber sector is probably the strongest seasonal sector of all the sectors that are available. Historically you want to buy lumber stocks right around the end of October, beginning of November and hold them right through until the beginning of April. There are some ETFs in this area such as iShares S&P Global Timber & Forest (WOOD-Q).

Not a liquid stock and is trading under a dollar, so it is difficult for a fund manager to hold it. Wouldn't touch it. If it breaks above $1.12 then you could go for it.