If you are looking for a way to profit from an improving housing market then Norbord is worth checking out. A material used in houses is oriented strand board. Norbord is a pure play on the commodity. If demand for housing and thus OSB continues, then Norbord has yet to achieve peak cycle. The housing market still remains below the historical average. This is an idea that my friend David Kessler of Robotti & Co presented at the Cyprus Value Investor Conference. I wrote a brief article for Seeking Alpha which you can read for free here. I took a look at what peak multiples from 2003-5 and what they imply for today’s valuation.
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Sophocles Sophocleous
