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Louisiana-Pacific May Have A Little More Gas In The Tank, But The Light Is Flashing (NYSE:LPX)

Between surprisingly strong housing activity and an ill-timed supply shutdown, the oriented strand board (or OSB) market is booming, with prices blowing through past peak levels around $450/msf and smashing the old 2004 housing boom pricing records. As the second-largest manufacturer of OSB, that’s good news for Louisiana-Pacific (LPX) shareholders, as the company is going to reap a surge in profits and cash flows.

The downside is that the booms never last. The price spike has been driven in large part by capacity reductions tied to COVID-19 (though some structural/cyclical shutdowns prior to COVID-19 played a role) at a time when building activity has stayed surprisingly strong and renovation/repair work has surged. Producers like Norbord (OSB), LP, Georgia Pacific, and Weyerhaeuser (WY) are scrambling to reactivate capacity to serve this demand, but the high prices won’t last. They never last.

I’m bullish on residential housing through 2021 and capacity additions in the OSB sector have been relatively restrained in recent years. That could leave a little gas in the tank for further share price appreciation, but I think anybody considering the shares ought to have an exit strategy in mind, as a look at a long-term chart will tell you that the cyclical corrections here have been pretty ferocious.

A New High For OSB Prices

OSB prices have been on a tear, rising from around $270/msf in the second quarter to around $650/msf early in September to over $700 more recently. At those late September prices, OSB has topped its former peak prices by around 50%, and that is going to drive sharply higher realizations for LP and other OSB producers, as LP was already back to 90% of available capacity at the end of the second quarter.

The spike hasn’t occurred in a vacuum. Recent house starts have

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’Nightmare’ intersection in Catasauqua, a known problem for decades, gets green light for improvements

It’s been said by many a public official and resident that turning left onto Race Street from Lehigh Street in Catasauqua is like “taking your life into your hands.”



a car driving down a busy street: Traffic begins to back up along Lehigh Street attempting, to exit onto Race Street Wednesday in Catasauqua. Borough officials voted narrowly to allow PennDOT to move forward with improvements to the Race and Lehigh Street intersection, long the bane of residents and commuters.


© Rick Kintzel/The Morning Call/The Morning Call/TNS
Traffic begins to back up along Lehigh Street attempting, to exit onto Race Street Wednesday in Catasauqua. Borough officials voted narrowly to allow PennDOT to move forward with improvements to the Race and Lehigh Street intersection, long the bane of residents and commuters.

Living in a house near the three-point intersection, Joshua Fritz has a prime-time view of its traffic woes, the bane of residents and commuters for decades. During rush hour, he said, he witnesses close calls almost every other day.

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It’s always dicey to escape his driveway as cars coming from the opposite direction make similar quick escapes during breaks in traffic.

“For me to get out of here, I have to drive like I’m in New York City,” he said.

The intersection was the subject of a PennDOT traffic signal study in 1979. It’s been called a “nightmare” intersection in newspaper articles since the 1990s. Regional planners started drawing up improvement concepts as early as 2000.

Generations later on Monday night, Catasauqua officials signed the official resolutions necessary to allow PennDOT’s proposed $12 million to $14 million improvement project to move forward, which involves widening roads and installing three traffic signals at Race Street’s intersections with Lehigh, Front and Second Streets. Race Street is a state road, and the Federal Highway Administration and PennDOT are funding the improvements.



a car parked on the side of the street: Traffic begins to back up along Lehigh Street attempting to exit onto Race Street Wednesday in Catasauqua. Borough officials voted narrowly to allow PennDOT to move forward with improvements to the Race and Lehigh Street intersection, long the bane of residents and commuters.


© Rick Kintzel/The Morning Call/The Morning Call/TNS
Traffic begins to back up along Lehigh Street attempting to exit onto Race Street Wednesday in Catasauqua. Borough officials voted narrowly to allow PennDOT to move forward with improvements to the Race and Lehigh

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A Few Ideas On Choosing Kitchen Light Fixtures When Remodeling Your Kitchen

If you think your house needs some remodeling and you do not have a big budget, consider starting with kitchen light fixtures. They are the easiest and most affordable – just introducing one light that lights brighter or blends with other fixtures can add a new appealing look to your kitchen. And most importantly you do not need a decor specialist to choose kitchen fixtures for you.

All you need to do is a bit of planning on your part – look at the size of your kitchen, your color scheme, finish on your flooring and cabinets. After taking all this in decide on the type of look you want to improve your kitchen to. You can choose from rustic, industrialized, contemporary looks – just to mention a few choices out there.

After deciding on the look think about the areas in your kitchen you want to brighten with light. After deciding on such areas now look at the available kitchen light fixtures that can blend in with the look and style you have chosen. And while you are at it, it may be an opportune time to go for energy efficient fixtures. This will save you more money in the long run.

Energy saving lights include LED bulbs, fluorescent lights, halogen bulbs. These types of fixtures have their own unique advantages. For example halogen lights normally last 3 times longer than normal lights we are used to. You might want to do a bit of researching to see which type will give you the most benefits without digging too deep into your pocket.

Another point to remember is that after you choose from contemporary, rustic, et al look, lighting in your kitchen is further categorized into task, accent, ambient and decorative type of lighting. As an example, task light …

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