When my recent post about Plum Creek Timber (a client holding) was run on Seeking Alpha, a reader left the name of a stock I had never heard of before; Timberwest Forest (TWF-UN.TO in Canada and TWTUF on the pink sheets).
Timberwest is one of these Canada listed products that ties in with some sort of resource and pays an enormous dividend, the hydro funds fall into this category.
The chart (click to enlarge) goes back a year and compares Timberwest with Plum Creek Timber (PCL) and Macquarie Infrastructure (MIC), which is also a client holding. Timberwest and Plum Creek are obviously both timber companies and Timberwest and MIC are both not so simply constructed businesses with high dividend payouts.
An investor who bought MIC or Timberwest at the wrong time may not have necessarily known that this sort of stock would have gone down in this manner perhaps in conjunction with the financial sector so just owning one of these in moderation is not a big deal. If one of these are down chances are something else is up.
I do think an investor could realize what MIC and Timberwest have in common and realize that they might go down together even if they did not know when they would go down or understand what would take them down.