Anyone who tells you that money doesn't grow on trees just doesn't understand the tree business. I like companies that are in the tree business. They're in the business of wood and lumber, plywood and particle board, wood chips, shavings, sawdust, and bark. Once you put those little saplings in the ground just sit and let nature do the rest. Wait a bunch of years, cut down the trees, sell them for a bunch of money, and plant some new saplings. Life couldn't be any simpler or any better.
Timber companies, unlike farmers, can control supply because trees don't have to be harvested at any particular time. If demand doesn't materialize that produces a sufficient profit for the companies, the timber companies can always withhold their supply to raise prices.
They're also not making any more land. Timberland will continue to increase at a rate relative to inflation as long as it remains timberland. As population increases and cities begin to expand, timberland will be converted to other uses and land values will begin to increase exponentially. In the meantime, timberland will continue to throw off tons of money in the form of dividends from the timber itself as it's harvested.
I've already review two of the largest timberland companies in the article "Tree Farms Are Farms Too", dated 24 September 2014. Those companies were Weyerhaeuser and Plum Creek Timber and the information contained in those articles are important and relative to the information below.
The following are five more timber related companies that have a somewhat smaller market capitalization than Weyerhaeuser and Plum Creek Timber but sometimes smaller companies have advantages that larger companies don't have. These companies also are not strictly timber companies. They also have interests in timber related industries. In fact Rayonier, Inc., just recently spun off Rayonier Advanced Materiels, Inc., as a tax free dividend to its shareholders.
A few minutes spent looking into these companies may just prove to be very beneficial to your financial health.
Good Luck and Good Trading.
Timber companies, unlike farmers, can control supply because trees don't have to be harvested at any particular time. If demand doesn't materialize that produces a sufficient profit for the companies, the timber companies can always withhold their supply to raise prices.
They're also not making any more land. Timberland will continue to increase at a rate relative to inflation as long as it remains timberland. As population increases and cities begin to expand, timberland will be converted to other uses and land values will begin to increase exponentially. In the meantime, timberland will continue to throw off tons of money in the form of dividends from the timber itself as it's harvested.
I've already review two of the largest timberland companies in the article "Tree Farms Are Farms Too", dated 24 September 2014. Those companies were Weyerhaeuser and Plum Creek Timber and the information contained in those articles are important and relative to the information below.
The following are five more timber related companies that have a somewhat smaller market capitalization than Weyerhaeuser and Plum Creek Timber but sometimes smaller companies have advantages that larger companies don't have. These companies also are not strictly timber companies. They also have interests in timber related industries. In fact Rayonier, Inc., just recently spun off Rayonier Advanced Materiels, Inc., as a tax free dividend to its shareholders.
A few minutes spent looking into these companies may just prove to be very beneficial to your financial health.
Good Luck and Good Trading.
Rayonier, Inc. (RYN) engages in the sale and development of real estate and timberland management, as well as in the production and sale of cellulose fibers in the United States, New Zealand, and Australia. The company operates in four segments: Timber, Real Estate, Performance Fibers, and Wood Products. Timber segment owns, leases, or manages timberlands and sells standing timber at auction to third parties, as well as sells delivered logs. Real Estate segment sells medium and large tracts of land with infrastructure. This segment holds development and rural properties primarily in the southeast United States. Performance Fibers segment manufactures cellulose specialties that are used principally in acetate textile fibers, cigarette filters, rigid packaging, LCD screens, photographic film, impact-resistant plastics, high-tenacity rayon yarn, pharmaceuticals, cosmetics, detergents, food casings, and food products; and absorbent materials that are used in disposable baby diapers, feminine hygiene products, incontinence pads, convalescent bed pads, industrial towels and wipes, and nonwoven fabrics. Wood Products segment primarily manufactures and sells dimension lumber used for residential and industrial construction applications. In addition, Rayonier involves in trading and exporting logs, lumber, and wood panel products. As of December 31, 2005, it owned, leased, or managed approximately 2.5 million acres of timberland and real estate. The company has a joint venture with RREEF Infrastructure to own and manage timber lands in New Zealand. Rayonier has elected to be treated as a real estate investment trust (REIT) for federal income tax purposes and would not be subject to federal income tax on its REIT income that it distributes to its shareholders. The company, formerly known as Rainier Pulp & Paper Company, was founded in 1926. Rayonier is headquartered in Jacksonville, Florida.
(Daily Chart) (Weekly Chart)
(Daily Chart) (Weekly Chart)
| 9 October Price $31.74 1yr Target $35.00 Analysts 6 1yr Cap Gain 10.27% Dividend $1.20 Yield 3.78% 1yr Est Tot Return 14.05% | Market Cap $4.02 Bil Beta 0.81 EPS (ttm) $1.22 Payout Ratio 98.36% EPS next yr $0.95 P/E 26.02 PEG N/A Forward P/E 33.48 | Debt/Equity 0.48 ROA 5.80% ROE 12.20% ROI 11.50% Sales $1.21 Bil Income $158.10 Mil Profit Margin 13.05% |
Potlatch Corporation (PCH) operates as a real estate investment trust (REIT) that owns and manages timberlands located in Arkansas, Idaho, Minnesota and Wisconsin in the United States. The Resource Management Division manages its timberlands, harvests timber, procures other wood fiber, sells logs and leases land for hunting and other recreational activity. The Real Estate Division develops and sells land parcels, as well as invests in timberlands. The Wood Products Division manufactures lumber, plywood, and particleboard in Arkansas, Idaho, Michigan, and Minnesota. This segment's products are sold to wholesalers primarily for use in home building and other construction activities. Potlatch was founded in 1903 and is headquartered in Spokane, Washington.
(Daily Chart) (Weekly Chart)
(Daily Chart) (Weekly Chart)
| 9 October Price $40.75 1yr Target $43.86 Analysts 7 1yr Cap Gain 7.63% Dividend $1.40 Yield 3.43% 1yr Est Tot Return 11.06% | Market Cap $1.65 Bil Beta 0.83 EPS (ttm) $1.78 Payout Ratio 78.65% EPS next yr $2.29 P/E 22.89 PEG 2.69 Forward P/E 17.83 | Debt/Equity 1.43 ROA 10.50% ROE 36.00% ROI 17.80% Sales $581.30 Mil Income $72.50 Mil Profit Margin 12.47% |
Deltic Timber Corporation (DEL), a natural resources company, together with its subsidiaries, is engaged in growing and harvesting timber, and manufacturing and marketing lumber. The company’s Woodlands segment harvests pine and hardwood pulpwood for sale to third parties for use in the manufacture of paper products; and provides timberland management services, such as harvesting and thinning operations, reforestation, cull timber removal programs, and introducing seedlings. It also leases oil and gas, hunting land, and other rights on its timberlands; and provides harvest planning, silvicultural improvement, and maintenance works for timberlands owned by others under management contracts with one-year renewable terms. This segment owns approximately 458,600 of timberland in Arkansas and north Louisiana. Its Mills segment operates two sawmills that manufacture and sell various softwood lumber products, such as dimension lumber, boards, and timbers to wholesale distributors, large retailers, lumber treaters, industrial accounts, and truss manufacturers; and is used in residential construction, roof trusses, remanufactured products, laminated beams, cabinets, flooring, and door parts. This segment also produces wood chips, shavings, sawdust, and bark as by-products. The company’s Real Estate segment develops and markets residential lots for homebuilders and individuals; and commercial sites for developers and businesses, as well as sells undeveloped acreage. This segment also leases retail and office space to third parties; resells existing homes; and operates a country club. In addition, it manufactures and markets medium density fiberboard (MDF) under the Solidium trade name for use in furniture, kitchen cabinets, laminate flooring, store fixtures, door parts, and molding. The company sells MDF to wholesalers, retailers, and manufacturers. Deltic Timber Corp was founded in 1996 and is based in El Dorado, Arkansas.
(Daily Chart) (Weekly Chart)
(Daily Chart) (Weekly Chart)
| 9 October Price $62.58 1yr Target $81.00 Analysts 1 1yr Cap Gain 29.43% Dividend $0.40 Yield 0.63% 1yr Est Tot Return 30.06% | Market Cap $787.26 Mil Beta 0.83 EPS (ttm) $1.44 Payout Ratio 27.77% EPS next yr $3.25 P/E 43.46 PEG 2.17 Forward P/E 19.26 | Debt/Equity 0.78 ROA 3.80% ROE 6.80% ROI 7.40% Sales $218.90 Mil Income $18.20 Mil Profit Margin 8.31% |
CatchMark Timber Trust Inc. (CTT) originally began life in 2007 as Wells Timber REIT, a private REIT formed by Wells REF, a private investment firm. Wells Timberland REIT, Inc., a real estate investment trust (REIT), focuses on the acquisition of timberland properties in the United States. It intends to acquire timberland properties throughout the timber-producing regions of the United States and, to a lesser extent, in timber-producing regions outside the United States. The company intends to qualify as a REIT under the Internal Revenue Code of 1986. Wells Timberland REIT was founded in September 2005. It was formerly known as Wells Real Estate Investment Trust IV, Inc. and changed its name to Wells Timber Real Estate Investment Trust, Inc. in November 2005 and changed to Wells Timberland REIT, Inc. in 2006. The company is headquartered in Norcross, Georgia.
(Daily Chart) (Weekly Chart)
(Daily Chart) (Weekly Chart)
| October Price $10.73 1yr Target $14.00 Analysts 3 1yr Cap Gain 30.47% Dividend $0.50 Yield 4.65% 1yr Est Tot Return 35.12% | Market Cap $422.33 Bil Beta N/A EPS (ttm) -$0.66 Payout Ratio N/A EPS next yr $0.09 P/E N/A PEG N/A Forward P/E 123.33 | Debt/Equity 0.41 ROA -2.60% ROE -3.70% ROI -2.60% Sales $36.20 Mil Income -$9.60 Mil Profit Margin N/A |
Pope Resources (POPE), A Delaware Limited Partnership manages timber resources in the United States. It operates in three segments: Fee Timber, Timberland Management & Consulting, and Real Estate. The Fee Timber segment is involved in growing, harvesting, and marketing timber to domestic manufacturers and export brokers consisting of 201,000 timberland acres that it own or manage as tree farms. The Timberland Management & Consulting segment provides management, acquisition, disposition, and consulting services to third-party owners of timberland. This segment is also engaged in raising investment capital for the funds, as well as acquiring and managing properties on behalf of the funds. The Real Estate segment is involved in securing entitlements and/or infrastructure for the development; selling the entitled property to a party who would construct improvements; negotiating conservation easements; and leasing residential and commercial properties, as well as a commercial office building. This segment operates a portfolio of approximately 2,900 acres in the west Puget Sound region of Washington. Pope Resources sells its logs to lumber mills and other wood fiber processors located in western Washington and northwest Oregon, as well as to export intermediaries located at the ports of Longview, Tacoma, Port Angeles, and Olympia, Washington; and Astoria, Oregon. The company also leases cellular communication towers, as well as gravel mines and quarries. Pope MGP, Inc. and Pope EGP, Inc. operate as the general partners of Pope Resources, A Delaware Limited Partnership. The company was founded in 1985 and is headquartered in Poulsbo, Washington.
(Daily Chart) (Weekly Chart)
(Daily Chart) (Weekly Chart)
| 9 October Price $ 67.00 1yr Target N/A Analysts N/A 1yr Cap Gain N/A Dividend $2.60 Yield 3.88% 1yr Est Tot Return N/A | Market Cap $292.60 Mil Beta 0.33 EPS (ttm) $3.95 Payout Ratio 65.82% EPS next yr N/A P/E 16.72 PEG N/A Forward P/E N/A | Debt/Equity 0.98 ROA 5.70% ROE 23.80% ROI 9.20% Sales $87.10 Mil Income $17.30 Mil Profit Margin 19.86% |
Additional Articles of Interest.
"Tree Farms Are Farms Too" - dated 24 September 2014
"Betting On The Farm" - dated 22 September 2014
"Tree Farms Are Farms Too" - dated 24 September 2014
"Betting On The Farm" - dated 22 September 2014
Print 
PDF
RSS Feed
