Betting on a timber rebound

Value investors in Canada's beaten-down lumber industry, including some of the country's largest mutual funds and smartest players, could be lost in the woods for a lot longer.

Everything that could go wrong has gone wrong - an epic depression in the U.S. housing market, pine beetles munching their way through the woods and a Canadian dollar that just continues to soar.

With valuations under so much pressure, many of the biggest names in the business have committed significant capital to softwood lumber stocks, and now run the risk of being caught in a value trap while they wait for a rebound. The stakes are big.