Village Farms (OTCQX:VFFIF) has been under pressure from several short term factors that are unnecessarily influencing the price (as updated yesterday, I am actively accumulating). In order to raise the necessary cash to be opportunistic I decided to sell my short-term (not intended to be this short term, but it happens) investment in Norbord (OSB).
Norbord is a highly profitable maker of OSB, a superior replacement to the previous industry standard. It's cheap, margins are strong, and it is immensely useful in construction applications.
Norbord specialization is a big reason I am not planning on accumulating a position in it over my lifetime, but I will continue to keep the company in mind for the future. This company is highly leveraged to new construction in North America, which may make a worthy investment during the next economic slow down... I am not expecting that for quite some time, but its very likely over a long time horizon, so I'll keep it on my watch list.
The strong dividend makes it hard to walk away from this one, but continued strength in OSB pricing is not guaranteed, though managements move's during the recovery (and management during the pricing crisis) makes it a worthy addition to any long term portfolio.
Thanks for reading, and happy investing.
Disclosure: I am/we are long VFFIF.