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

Weyerhaeuser's Asset Quality Held Back By A Sluggish Recovery

Now that Weyerhaeuser's (NYSE:WY) transaction with TRI Pointe Homes (NYSE:TPH) and subsequent tender offer are done, it's time for attention to move back to the core operations - high-quality timberland, a sizable wood products operation, and a "larger than you might think" cellulose pulp business. Weyerhaeuser's timber and wood products are going to generate the lion's share of shareholder value going forward and the company is well-placed in terms of asset quality.

In the meantime, though, a sluggish housing recovery in the U.S. and some challenges in key Asian markets are keeping the company from reaching its full potential. Plum Creek (NYSE:PCL) arguably offers more upside to a stronger recovery in timberland value...

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