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

To: bruwin who wrote (66528)	2/14/2021 10:11:42 AM
From: E_K_S	Respond to of 78816

I am not sure how they depreciate timber. Is it based on actual harvest, or some other formula. Typically timber harvest (for chips) is a seven year cycle. Both companies did a restructure and 2019 was a bad year in general so that one year of expenses/charges may/could have skewed the averages. That said, the premise looking forward is timber prices are higher so both companies may/could see higher revenues from that. My investment theses is to own an interest in their timber land/farms as I suspect the value of the land and crops will be higher in 5 years. FWIW I have a much larger position in CTT (A REIT Timber company) CatchMark Timber Trust Inc. is a real estate investment trust. The Company is involved in the ownership, management, acquisition and disposition of timberlands primarily in the United States. CatchMark Timber Trust Inc. is based in Norcross, Georgia. Their financial are not very good but improving. Debt/Equity for CTT very high at 3.23x and is selling at 2.7x BV. Based on CTT financials (and past results), I chose to start a new position in CFX.TO mainly because I could buy their timber land assets at/near BV. I wanted to up my portfolio exposure in timber (just under 0.5%) so I did it w/ these two companies. It's very small. I am focused on Farm Land and want to get my portfolio exposure to 2% (or higher). BWEL is one I own and am looking at others.

To: bruwin who wrote (66528)	2/14/2021 1:20:42 PM
From: E_K_S	Read Replies (1) \| Respond to of 78816

I am not sure how they depreciate timber. Is it based on actual harvest, or some other formula. Typically timber harvest (for chips) is a seven year cycle. Both companies did a restructure and 2019 was a bad year in general so that one year of expenses/charges may/could have skewed the averages. That said, the premise looking forward is timber prices are higher so both companies may/could see higher revenues from that. My investment theses is to own an interest in their timber land/farms as I suspect the value of the land and crops will be higher in 5 years. FWIW I have a much larger position in CTT (A REIT Timber company) CatchMark Timber Trust Inc. is a real estate investment trust. The Company is involved in the ownership, management, acquisition and disposition of timberlands primarily in the United States. CatchMark Timber Trust Inc. is based in Norcross, Georgia. Their financial are not very good but improving. Debt/Equity for CTT very high at 3.23x and is selling at 2.7x BV. Based on CTT financials (and past results), I chose to start a new position in CFX.TO mainly because I could buy their timber land assets at/near BV. I wanted to up my portfolio exposure in timber (just under 0.5%) so I did it w/ these two companies. It's very small. I am focused on Farm Land and want to get my portfolio exposure to 2% (or higher). BWEL is one I own and am looking at others.

To: bruwin who wrote (66528)	2/14/2021 9:59:29 PM
From: scbeachbum	1 Recommendation Recommended By E_K_S Respond to of 78816

Look at the analyst estimates for RFP. $1.15 a share in earnings up from 73 cents a week ago, high estimate of $1.64. That's not bad at all for one quarter on a stock that trades at $10. They are literally printing money, and high lumber helps a ton, and it doesn't look like it's going to be slowing down, if anything there might be another "super spike" in prices there as builders have been holding off buying lumber, but now getting into Spring construction season in the hottest real estate market ever, they have no choice but to buy lumber. On top of that pulp prices are rocketing higher and paper too, so they have some good tailwinds. They also paid down debt, which equates to higher EPS going forward. There's a lot of positives going for RFP at the moment and the stock still trades at a discount to tangible book, even with them printing all this cash.