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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (51467)	5/4/2013 9:38:50 AM
From: E_K_S	Read Replies (2) \| Respond to of 78744

Hi Spekulatius - Re: Answorth I wanted some sort of investment that was a "pure" play on the real estate recovery. Answorth came up on my list as they were one of the largest OSB manufactured wood suppliers. Their product is also innovative for the industry so I believe new construction projects would use their materials over traditional stranded boards. When looking at Lowes and HomeDepot these stocks have already moved much higher and no longer were candidate stocks. There may be other material suppliers that could be better value buys so I started just a small position in Answorth so I could monitor the industry news. I also have been building up my Jr copper miner holdings as this is one of the most used raw material in the real estate construction industry. Maybe there are some other value added manufactures that use the copper to make end user products (ie wire, pipe, fixtures). I wanted to also focus just on the U.S. market since this is the region I believe will see the growth (not Europe, Canada or Asia). Answorth is also making finished flooring products. Most if not all of their products are high margin products as a lot of value is added during their manufacturing process. My thesis is the Fed has shown that they plan to continue QE so interest rates will stay low for an extended period. As the economy improves, more home and/or apartments will be built and/or remodeled as the low interest rates will spur demand. Notice that Answorth has only one curtailed mill they plan to start up again. There are four other mills that are starting up, three located in the South East. Answorth may have a competitive disadvantage in transportation costs but notice that their facilities have closer access to the west coast & mid west markets. EKS