OSB capacityThere is a lot of what I call "swing capacity" hanging over the OSB market. This consists of relatively inefficient mills that are mothballed when OSB prices are down, but can be brought back into production when prices are up. Norbord too has mills like this (in the US South and in Quebec). A lot of this capacity was brought into production when OSB prices skyrocketed a few months ago. Predictably, prices took a nosedive.
It is true that Efficient producers (such as Norbord) can still be profitable at today's prices. The danger that (I think) investors perceive is that the notoriously undisciplined panel sector will not withdraw the unprofitable capacity, as long as the mills are able to cover their cash costs (but not their interest and depreciation). If this happens, prices risk to drop further (say under $200), a level at which most mills are unprofitable.
I think this widespread fear is driving down the price of Norbord stock. It has become toxic waste, nobody wants to hold it. I also think that exaggerated dividends scare serious investors.