West Fraser Timber (WFG.TO)

Had a huge beat on the earnings today, but thinks there is further pullback coming. Be careful with lumber stocks. He thinks the housing sector is rolling over.

This one has a lot more room to go. These companies are just starting to move now. If you don’t have a full position, you could Buy more.

Low $70’s, such as $74 would be a comfortable entry point for him.

This is one of the most seasonal trades. It bottoms around the middle of October and usually peaks around this time of year. During the last 2 weeks, the stock is starting to show some signs of underperformance, relative to the Toronto market. It is also below its 20 day moving average. Historically, the seasonal trade ends April 15 so if you own, now would be the time to take profits.

Loves the lumber stocks but they have had a good run. On a pull back of roughly 10%, he would be a buyer of Canfor (CFP-T), International Forest Products (IFP.A-T) or this one.

US housing starts continue to surprise on the upside so outlook for lumber remains good and pulp not too bad. His target on this is in the low $80’s.

This group has had a good run and it does appear there is improvement taking place in the US housing market and lumber pricing is moving along with it. This is a higher risk position, so you want to have a Stop on it.

Seasonal period is from Mid Oct until end of Feb and then another spurt into April. You have a winner here.

Had a great year but doesn’t think this is a great entry point. He has been in the stock for about 6 months and has a small remnant remaining. Neutral on the stock. Often, in January, the winners from the prior year have a little hiccup. If there was a 10%-15% pullback he would get interested again.

Has had a heck of a run. Largest lumber company globally. Would like to see the price dropped to $65. Price of lumber is projected to go up substantially during the next several years because some of the lumber capacity has been shut down. Also, looking at Canfor (CFP-T).

Housing recovery in the US is very real right now. The one issue with BC based lumber companies is the pine beetle, which is very serious. If you own, consider taking some profits.

All the timber stocks have been on a roll. Reacting positively to a housing recovery in the US. If there is a pullback he would certainly jump in, but you don’t have to wait for a pullback even.

You want to buy this stock right around the end of October and take some profits in April. This particular security is breaking through a multiyear high, which is even better. Technicals are very much in tune in this case.

Lumber stocks tend to do very well at this time of year. This is also the time of the year when the housing industry does extremely well. It will be interesting to see if it can get through $63. If you don’t own, wait for it to go through $62.60 and if it does that on good volume, that would be a Buy.