fcharlie

Overvalued Timber REITs: No Improvement on the Horizon

WY just announced the sale of 140,000 acres at $2,142 per acre. PCL has been selling hundreds of thousands of acres at around the same price.. While I am interested in learning more about TIMO liquidations, I do think that timber companies view their businesses with a much longer time horizon. They don't generally grow a tree for 35 years only to chop it down and sell into a weak market. Also remember that a large portion of Weyerhaeuser's lumber goes to Japan and China via their Westwood Shipping Lines. Also remember that a lot of British Columbia's timber, won't exist in a few years. Read up on the pine beetle and the damage it's causing pine forests in B.C. I think much of your thesis is priced in. But please share more info on TIMO liquidations.