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Pastimes : Let's Talk About Our Feelings!!! -- Ignore unavailable to you. Want to Upgrade?

To: MSB who wrote (65234)	12/5/1999 11:45:00 AM
From: Lizzie Tudor	Respond to of 108807

How is an old growth forest an income producing property? Do you mean as in "potentially income producing", or are you inferring in another manner? No, again I'm not an expert on this... but logging is ok in regions like this but its the clearcutting that is a problem. So, you could maintain the business and make a decent profit over time - carefully logging and reforesting ... thats what the old owners did, HOWEVER, if you do some kind of hostile takeover with junk bonds where your interest payments are huge then this "modest profit" will be unacceptable and then its clearcutting or perish, I believe. Thats where this company is, Chainsaw Charles knew he would be cutting down the entire forest when he took control of the company. In essence, he bought Pacific Lumber to dismantle it, not to operate it as a functioning business. That movie "Wall Street" had this exact scenario with Martin Sheen's airline that Gekko bought to dismantle. Dismantling companies to access hidden wealth might be ok if its just a company in an industry of competitors and the black sheep can't compete. But in a natural resources business it is unacceptable... its a short term windfall which leaves future generations with nothing. Well, thats jmo. If a bunch of chainsaw happy property owners starting harvesting the resources in mass quantities wouldn't those resources glut the market thereby driving the prices down and essentially make their investments come out at a loss overall? I don't think so... not in the case of redwood trees. There is colossal worldwide demand, but others probably know more than me on this. I believe the market can absorb all the hardwood we can produce, is my guess.