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Editor's notes: Timber company POPE has an underwhelming yield for an MLP and is vulnerable to any housing slowdown. A buysider sees 50% downside in the event of a new recession.

"The housing market is softer than people think," (Jeffery) Gundlach said, pointing to a slowdown in mortgage refinancing, the time it's taking to liquidate defaulted loans and shares of homebuilders that have dropped 16 percent since reaching a high in May. (Bloomberg, January 24th)

Pope Resources (POPE) is a publicly traded Master Limited Partnership (MLP) owning and managing land and timber in the Pacific Northwest, created as a spin-off in 1985. Assets include 113,000 acres of productive fee timberland and a 15% co-investment in 90,000 timberland acres. Essentially, all Pope's revenues are timber-related or land sales.

Pope has paid a trailing past-year distribution of $2.00, which equates to a sub-3% yield. This is far...

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