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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (25517)	12/15/2006 10:36:30 AM
From: E_K_S	Respond to of 78507

Good job with Weyerhaeuser Co. (WY). I guess the letter the board received recently from Franklin Mutual Advisers got several of the analysts thinking about the hidden value in the company. We discussed many of these values on this board. ARA is having some issues with land they obtained that may have been taken from local indians. This should be resolved w/o any significant problems. It does show that ARA must be a good corporate stuard of their land as it is their most valuable asset. EKS

To: Paul Senior who wrote (25517)	1/25/2007 11:04:58 PM
From: E_K_S	Read Replies (3) \| Respond to of 78507

I have been looking at VCP too. I am thinking of starting a new position in this company as they are competitors with ARA. VCP has excellent free flow cash flow, a forward PE of 12 (similar to ARA) and a higher book value that ARA at $11/share (61% of book for VCP vs 38% of book for ARA). They key to maintaining high margins is to fully utilize their plant capacity. ARA recently announced a partnership that achieves a high utilization of their facilities, doubling their output. VCP has spare capacity and may also be looking for such a partner. ARA has higher operating margins because they appear to be operating their facilities more efficiently (20% better than VCP). VCP may be selling at a discount to ARA by $3/share because of their operating inefficiencies. Most of the outstanding shares for VCP are held by institutions. Any thoughts? EKS