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Norbord Inc. T.OSB

"Norbord is the largest global producer of oriented strand board, which is used as a structural panel for building applications. The majority of its mills are located throughout the United States, with additional capacity in Northern Europe."


TSX:OSB - Post by User

Comment by rjb1954on Oct 17, 2018 1:32pm
264 Views
Post# 28820462

RE:RE:RE:This is nuts

RE:RE:RE:This is nutsOSB is obviously a short target in recent weeks. The company went into its quiet period at the beginning of October, so it really isn't in a position to repond until earnings are declared on Nov 1.

Lumber prices have dropped dramatically in the last few months after reaching bubble-like highs. It looks like osb prices are off by about a third in the same period. I suspect the osb price drop is what the shorts are fixated on.

However, don't forget that OSB's ROE hit 56% in the last quarter. Even if this drops by half because of lower product prices, it is still a good company to own at these price levels. I am buying back shares I sold at higher levels.
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