Monday, August 15, 2016

Sold Norbord, bought Norbord, pocketed the profit

I still like Norbord but I sold my shares recently for $33.35. A friend sold some of his for, I believe, $33.75. It just seemed like a good time to take some profits and it was. The price dropped below $32 today. I bought back my shares for $32.01.

Some of the financial fortune tellers I follow have declared target prices for Norbord well above today's closing. Are they right? Maybe. I wouldn't bet on it, though. One guesstimate has Norbord hitting $37 Cdn. or more. I can't see myself holding on long enough to see that lofty value but I'm holding a few hundred shares again and I hope to ride 'em up the charts for a few weeks or more.

Who knows, maybe the dividend will increase at some point in the future and Norbord will be again a dividend-paying leader with a solid place in my portfolio. If not, I'll just keep buying and selling OSB and making a nice profit. This is the second time that I have played this sell high and buy back low game with Norbord.

Now, to look at my EWS units. I think it is time to take my profits on this one and move on. EWS is an iShares ETF tracking the Singapore stock market. I am well into four digit profits but with the increase in unit value the yield is now simply too low as a percentage for a fellow in retirement. I can do better. I must do better. My retirement income demands it.

Addendum: Today I saw this report on housing starts in the U.S. Starts are up and so are OSB prices. It looks good for Norbord in the short term. I'm feeling good about my OSB holdings.