My Ainsworth Lumber Co. LTD Investment

SteadiTred Stair Tread Panels

In my IRA, I own shares of Ainsworth Lumber Co. LTD (ANSBF) and I also own a Corporate Bond issue in that company. Over 5 years ago, this company had to reorganize and I ended up with a new bond with stock in the company. On the OTC Market, the stock on March 13, 2012 sold for $1.57 US. The 52 week high was $1.64 US that occurred on 3/01/2012 and its 52 week low occurred on 12/29/2011 at 90 cents US. The stock just started trading in December 2011 on the Over-the-Counter (OTC) market. It also trades on the Toronto Canadian Exchange and the Frankfurt Germany Exchange.

If I am a gambling man (and I am not), I would place $164 in this stock and buy 100 shares of it.

Ainsworth Lumber Co. Ltd. manufactures and markets engineered wood products in North America and Asia. Its engineered wood products include oriented strand board, oriented strand lumber, and specialty overlaid panels. The company offers flooring products, rim boards, and Web stock for I-joists for floors; stair tread panels, stringers, and risers for stairs; headers, sheathing, and radiant barriers for walls and roofs; concrete forming for sidewalks, curbs, slabs, and non-structural concrete; and structural insulated panels. It serves dealers, builders, original equipment manufacturers, homeowners, specifiers, wholesale distributors, building materials professionals, and other integrated forest products companies. The company was founded in 1950 and is headquartered in Vancouver, Canada.

Problems with Alien Companies

First let’s learn the word of the Investment Business. I am from Pennsylvania. I pay my taxes to Pennsylvania. So any company that is created in Pennsylvania is a domestic company. Any company that is created outside Pennsylvania but is created inside the United State is a foreign company. Any company that is created outside the United States is an alien company. So this company, a Canadian Business is an alien to any US Citizen. This terminology goes back before the Civil War when states acted as separate nations when it came to business. This is the major factor in setting off the Civil War (labor practices between states). Special investment rules apply in this case.

I had an odd lot of shares (1 thru 99 shares) in this company and I wanted to get an even lot of shares (100, 200, 300, and etc. shares). I tried to buy the amount of shares that I needed to bring me up to an even lot. The brokerage firm did not allow me to buy the shares. The SEC had a block on these share not allowing any US Citizen to buy them. So I contacted the Securities and Exchange Commission (SEC), Philadelphia District Office to find out why since Canada is a friend and trading partner of the United States.

Securities and Exchange Commission

Arthur Gabinet, District Administrator
Philadelphia District Office
Mellon Independence Center
701 Market Street,
Suite 2000
Philadelphia, Pennsylvania 19106-1538
(215) 597-3100

E-mail Address: philadelphia@sec.gov

I never found out from the SEC why or what the problem was. But on March 2, 2012 at noon, I got a call from my broker telling me that the odd lot shares was already in my account and that they took part of an interest payment from my bonds to pay for it. This was an odd phone call since I do my own online brokerage without the help of a broker. Here is why when something is not right, you got to follow up on it because all it takes is someone not doing their job and it could affect your investment transactions.

The new bond given to me is AINSWORTH LUMBER SER 144A 11.00000% 07/29/2015. It is a Moody’s CAA1 and a Standard and Poor’s B- rated bond. It sells for $790 US. Your assignment is to find out if the company pays its interest in Canadian or US currency.

Company Contact Info.

Bentall 4 1055 Dunsmuir Street

Suite 3194
PO Box 49307
Vancouver, BC V7X 1L3
Canada

Phone: 604-661-3200

Fax: 604-661-3201

http://www.ainsworth.ca/