| Comment | 4.250 | Sandy McIntyre | A distribution business in building products. Margins disappointed last year because of the mountain pine beetle creating a flood of lumber. Tied into the housing cycle. A well-managed company in a volatile business. | 2006-10-13 | |
| DON'T BUY | 4.260 | Garth Jestley | A distribution business that is a low margin business. Cyclical. Expects there will be more downside. | 2006-08-11 | |
| DON'T BUY | 4.180 | Sandy McIntyre | Distributor of building products. A major component of their throughput is lumber, particleboard and plywood. Got caught last year where mountain pine beetle caused massive destruction in BC. Created a much larger than normal cut which took pricing down. High volatility/high risk. | 2006-05-12 | |
| DON'T BUY | 4.440 | Robert Lauzon | A hardware/wood product distributor that converted to a trust. Very, very low margins at around 3%. Cut distributions 30%. There is no catalyst to make it go higher in the near term. | 2006-04-07 | |
| DON'T BUY | 4.840 | Michael Simpson, CFA | Recently cut their distribution. They get about 45% of revenue from lumber and panels which is a volatile area. Good management. Would prefer to see them cut to about an 80% payout ratio. | 2006-03-31 | |
| WEAK BUY | 5.150 | Ravi Sood | Has had challenges. Not a bad entry point. You have to be risk tolerant. | 2006-02-10 | |
| DON'T BUY | 4.450 | Dean Orrico | Distributing products to the Home Depots and Ronas of the world. Highly levered to forest products which can be quite volatile. Housing starts have been a lot lower. Too cyclical for his portfolio. | 2006-02-03 | |
| DON'T BUY | 3.650 | Ravi Sood | Doesn’t feel the distribution is sustainable, so thinks there will be cut, if not multiple cuts. Feels the housing cycle will be stretched out rather than a spike. This one became a trust during a peak in housing. You might treat as a trade during tax loss selling. | 2005-12-09 | |
| HOLD | 3.310 | Mark Jackson, CFA | Still thinks there's potential. Payout ratio is about 170% which cannot be sustained without a cut. Also had a one time charge of $2 million which would have left the payout ratio at 128% which is still too high. Have enough to sustain distributions for one or two quarters and hopefully improve their margins. | 2005-11-15 | |
| DON'T BUY | 4.650 | Michael Smedley | Has a yield of 21% with a very high payout ratio. The stock tumbled and will continue down with the uncertainty of income trusts. Wouldn't be his favourite. | 2005-11-10 | |
| DON'T BUY | 6.180 | Dean Orrico | Has had a pretty rough ride. Made an acquisition just before becoming a trust and is leery of this type of occurance. There is a significant part of their business levered to the forest prodiuct area. A name he would tend to stay away from. | 2005-09-30 | |
| TOP PICK | 5.780 | Mark Jackson, CFA | Pays 16%. Unit trust has come under some pressure after their last earnings release which had some special charges for conversion and an acquisition. They can also get caught on moving commodity prices. Feels there's a very good margin improvement story here. There is talk of a cut in distribution, but feels this is not the case. | 2005-09-12 | |
| DON'T BUY | 6.170 | Sandy McIntyre | Tries to make good assesments on all securities that they buy. Got bagged on this one. Disappointed in their cash flow. Trying to see management to look at issues. | 2005-08-12 | |
| TOP PICK | 19.650 | Mark Jackson, CFA | Have announced conversion to an income trust with a special $1.25 dividend. Going to rais some money and do a secondary issue. Liquidity is going to increase. Split 2 for 1 and pay $0.98 a share. All that combined puts a near term target price somewhere near the $22 range. Still opportunity to grow margins and to continue to consolidate. | 2005-04-13 | |
| PAST TOP PICK | 8.700 | Mark Jackson, CFA | (A past Top Pick Oct 4/04. Up 16%.) Still likes it. Cheap. Looking for $1 in earnings. Trading at just over 8 X. Just doing an acquisition which is very accretive. | 2004-12-07 | |
| TOP PICK | 7.550 | Mark Jackson, CFA | Underfollowed since its IPO about 6 months ago. Well run. Extremely cheap. | 2004-10-04 | |
Experts that have talked about Canwel Building Materials Ltd.
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