Ainsworth Lumber Co Ltd ANSBF

RE: RE: RE: RE: RE: RE: RE: RE: RE: MR 1derful

[mr1derful]

During Q42012, ANS had revenue of $117.9 million and adjusted EBITDA of $42.3 million. The benchmark NC price for 7/16 OSB was US$332. The company will easily earn $500,000 of EBITDA per day. If we are in a lumber supercycle the amount of cashflow that producers like ANS will earn will be so substantial that there will be additional returns to shareholders either via diveidends/and or share buybacks. The lumber and OSB business right now reminds me a lot of the metallurgical coal business a few years ago when China was a voracious consumer of resources during their building boom. Back then met coal miners, just like lumber and OSB producers today , went from having overlevearged balance sheets to generating so much cash flow in a short period of time that they had the means to pay off all their debt. If we are in the early stages of a US housing recovery then it is going to be very good times for lumber and OSB producers for multiple years.