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

To: Paul Lee who wrote (54488)	11/18/2014 12:34:41 AM
From: Jurgis Bekepuris	1 Recommendation Recommended By geoffrey Wren Respond to of 78628

Waste of an article. "It's not a bad thing", "who cares", blah blah. The author seems to imply that the company could report material misstatements every day of the week and he'd be happy about this. He even has gall to advocate hiding the material information because "transparency is good but sometimes too much is not". /facepalm. BTW, people jump on RYN and HTZ bandwagon with an "stock price drop was disproportionate compared to restatement" argument. However stock price drops not in proportion with restatement, but in proportion with trust. If management did not handle this right, how can you trust them to handle other things right? Sure, Amex salad oil scandal is the other side of this coin, but there the fraud was external. In cases of RYN and HTZ the wounds are self-inflicted. I sold my RYAM position and have no plans to buy any of the securities mentioned. Of course, these stocks can run up as investors' confidence improves. I won't gamble on that though.

To: Paul Lee who wrote (54488)	11/18/2014 4:36:55 PM
From: gcrispin	1 Recommendation Recommended By Jurgis Bekepuris Respond to of 78628

I agree with Jurgis that the tone of the article is disturbing, especially the phrases that were highlighted. But there is a great deal of good information in the article from someone who has worked in the industry. FWIW, I recently returned from visiting an industrial forest in the Northwest that is privately held. It has been in the family since they homesteaded the property in the 1860s. I had a chance to spend time with the company's forester and I can see how inventory and depletion are somewhat subjective. The Northwest forest are highly regulated. For example, no trees within a creek's watershed can be harvested. So where does a "watershed" end? That can be debated. This particular forest was on a sixty three year cycle, so every acre harvested has sixty three years to regenerate itself after being replanted. Weather and, of course, price also plays into the equation of the timing for harvesting. My sense is that the new CEO wanted to start from a more conservative stance on some of these line items, so I have RYN on my watch list.