Western Forest Products Inc. (WEF.TO)

It's not time to give up. Lumber prices have been falling just like the stock. If you take a look at housing construction, the chart looks just like this. This is the seasonal period when all these sectors tend to pick up. This is a good opportunity.

He would be cautious on any of these forest plays. The easy money was made in the first half of the year. Many of these positions are just unwinding very fast. It could be a falling knife.

Range-bound and had a nice run. Looks like it's falling back to $2.

It had a seasonal period earlier this year into March. Now, we're at a floor of $2.50. It's outside seasonality now. Could be a time to exit.

(A Top Pick January 23/17 Up 57%). They are building a business out west and selling into the US and Asian markets. They are broadening their business, adding a distribution centre in the US. It is over a $1 billion market cap. It is a core position and he hopes it can double from here. He feels they have cornered the clear cedar market.

The tariffs are already out there and the NAFTA risk is already priced in. They know how to deal with it. They have exposure to a lot of things that are working right now. They have exposure to economic growth. They are making moves to up their efficiencies. (Analysts’ target: $3.22).

The key factor for this company is that the US housing market is booming, housing is recovering, and housing starts are still way below where they need to be. All the forest product stocks have done very, very well. Sometime down the road there will be a settlement with the US and the tariffs will drop and the stock will pick up again.

(A Top Pick Feb 21/17. Up 23%.) He still thinks this is a great opportunity. There appears to have been a break out in the US House Builders index. There is certainly a built-up in housing demand for the 25 to 35 year olds.

(A Top Pick Feb 21/17. Up 24.57%.) Thinks there is still great opportunity in this.

A great Canadian company that specializes in different species of wood that are unique. A well run operation that allows the company to switch production from one species to another. They do this in the interests of optimizing the profitability of the company. Located in BC which gives them access to their plantations. They’ve invested quite a bit of money in trying to optimize operations further, and those initiatives have very high paybacks attached to them. The concerns are all around the softwood lumber agreements and how negotiations will proceed. This is a big question that is still outstanding. Even so, this company is still interesting at these levels.

Technical analyst Leon Tuey likes the profile. Year-over-year sales was up 10% and year-over-year earnings was up over 62%. ROE is 16.4% on a trailing basis and free cash flow yield is 8%, compared to 1.5% last year. Dividend yield of 3.72%. (Analysts’ price target is $2.32.)

The stock is kind of basing and recently has been consolidating into a bit of a weak triangle formation. This can result in a bullish formation if it breaks out. This is not negative or positive. Dividend yield of 4.15%.

A small player in the lumber sector. He has never owned a lumber stock before. It is a unique situation. You want a lumber stock in your portfolio. If they wait before cutting down trees, they are that much bigger when they finally do. Not having a resolution to the softwood lumber agreement will be a headwind for the sector, but they will find a way around it. (Analysts’ Target: $2.44).

Trading near a 52-week low, and 3^rd quarter results were one of the best in the company’s history. It has the largest exposure to Asia, and their species mix allows them great products which are desired by the Japanese in particular. Well-managed and the balance sheet is in good shape. Dividend yield of about 4%.