Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Plum Creek Timber Biding Time

The wait for Plum Creek Timber's (NYSE:PCL) realization of value from its timber assets drags on. These shares bounced up for a little while after my Top Idea write-up in September 2013 ("Patient Investors Get A Crack At Plum Creek Timber"), but declined sharply on the announcement of the acquisition of MeadWestvaco's (MWV) timberland and the concomitant equity offering. Matters were helped little when the company followed that up in January of 2014 with a weak guide for 2014 EPS on lower land sales.

Plum Creek shares have long traded at premiums to Weyerhaeuser (NYSE:WY) and Rayonier (NYSE:RYN) (at least on an EBITDA basis), but investors seem to be tiring...

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