An Under The Radar Timber Investment [View article]
At some point a company becomes too small. I think KEWL falls into this category. In addition to this they pay no dividend. A quick look at their 2012 report does not make me feel good about their capital spending.
An Under The Radar Timber Investment [View article]
I'm a big fan of POPE. Something does seem to be brewing at POPE. I'm not sure of the cause of the run-up, but POPE's market cap is actually approaching the market value of their timberlands. As I stated in an earlier article, POPE would make a great acquisition candidate at a price between $75 and $100 per unit.
Timberland Investments Return 7.76% In 2012 [View article]
Yes, I probably should have included POPE in this article. All of POPEs lands are in the Pacific Northwest, except a few acres in California, so they would have the highest appreciation on all of their acres.
Timberland Investments Return 7.76% In 2012 [View article]
Thanks Q.
No the primary business has no affect on the timberlands. Each business segment is a stand alone profit center. The manufacturing segment usually must bid for the timber and pay the going rate. The timberlands will always be managed for the highest return, which usually means saw timber.
Why Buy This Undervalued Timber REIT? [View article]
If you are going to use multiples, I think Cash Available for Distribution is the best number. You get a multiple of 22.3 using CAD. CAD was $304 million in 2012. Distributions were 67% of this so there is plenty of room to raise dividends (distribution). CAD should grow going forward as timber prices increase and the fiber segment moves out of fluff pulp and totally into cellulose specialty fibers. A 25% increase in CAD and a multiple of 22.3 gives a unit prices of around $68.90.
Comments On Rayonier's 2012 Results [View article]
Sorry, I don't follow CUT or WOOD. All of the timber REITs have been using the latest genetically improved seedling. Most own their own seed orchards and nurseries and belong to research coops and major universities, or do their own research. Growth improvements of 25% or more have been documented on some of the latest progeny.
Why Buy This Undervalued Timber REIT? [View article]
As much as I would like to believe your valuation, I just can't see it. RYN's timberlands are worth $4.0 to $4.5 billion by my estimate, their real estate $0.8 to $1.0 billion, and their pulp mills $0.8 to $1.0 billion. That adds up to $5.6 to $6.5 billion, or $45.53 to $52.85 per share, then you have to take into account the $1.2 billion of debt. Again, I wish you were right, but I don't think so. Show me if I'm wrong?
Comments On Potlatch's 2012 Results [View article]
Scooter, I'm afraid my portfolio allocation is not that scientific. I bought PCL, PCH, and RYN some time ago when the dividend yield was allot higher than it is right now. I don't own WY mainly because of the low yield. My portfolio is a little unbalanced due to an overly high holding of POPE, due to my working there for 10 years. Ignoring the POPE, I have a 13% allocation to timber REITS, 5% in both PCL and RYN, and 3% in PCH.
Comments On Plum Creek's 2012 Results [View article]
I can't say I've ever heard of them. I took a quick look and they appear to be a quite large timber company in Maine and Eastern Canada. Brookfield ownes 45% of the company? Their CEO is also a managing partner at Brookfield Timberlands. They look interesting. I'll take a closer look.
Comments On Plum Creek's 2012 Results [View article]
I'm not aware of any other formal agreements but I'm sure any timberland owner in the South sells at least some pulpwood to a pellet fuel mill. Quite a few mills have been built in recent years throughout the South.
U.S. Timberlands: Who Owns Them And Where Are They? [View article]
Thank you for pointing out a data entry error. The error is actually in charts 3 & 4. The public ownership in chart 3 is actually 6% not 12%, and the other private is 16% not 11%. In chart 4 other private should be 13% not 8%. Sorry for the errors.
An Under The Radar Timber Investment [View article]
An Under The Radar Timber Investment [View article]
An Under The Radar Timber Investment [View article]
Timberland Investments Return 7.76% In 2012 [View article]
Timberland Investments Return 7.76% In 2012 [View article]
No the primary business has no affect on the timberlands. Each business segment is a stand alone profit center. The manufacturing segment usually must bid for the timber and pay the going rate. The timberlands will always be managed for the highest return, which usually means saw timber.
Comments On Rayonier's 2012 Results [View article]
Why Buy This Undervalued Timber REIT? [View article]
Comments On Rayonier's 2012 Results [View article]
Why Buy This Undervalued Timber REIT? [View article]
Comments On Rayonier's 2012 Results [View article]
Comments On Potlatch's 2012 Results [View article]
I'm afraid my portfolio allocation is not that scientific. I bought PCL, PCH, and RYN some time ago when the dividend yield was allot higher than it is right now. I don't own WY mainly because of the low yield. My portfolio is a little unbalanced due to an overly high holding of POPE, due to my working there for 10 years. Ignoring the POPE, I have a 13% allocation to timber REITS, 5% in both PCL and RYN, and 3% in PCH.
Comments On Plum Creek's 2012 Results [View article]
Comments On Plum Creek's 2012 Results [View article]
Comments On Weyerhaeuser's 2012 Results [View article]
U.S. Timberlands: Who Owns Them And Where Are They? [View article]