Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
Random thoughts on Q2

- No Share buybacks during the quarter
- The company has about $180 m borrowing capacity; There could be additional deals before the end of the year
- The floating rate debt will not be converted into fixed rate and allows the company flexibility to pay down; Going forward fixed rate portion of the debt will increase as they make new acquisitions
- The new model of joint ventures will result in higher fee income; On the other hand currently substantially all of their timberlands are managed by external firms; hmmm
- 2Q experienced market disruptions in mill capacity and it could take till 2018 to resolve the excess inventory; Meaning no price increases for timber in their market till 2018
- during 1H the company has substantially completed all of their yearly timberland sales. expect little sales in 2H
- The higher sales of timber translated into higher EBITDA but are not translating into higher FFO. Why?
- Given existing multiples, the share price appreciation is highly suspect unless the FFO acceleration is visible
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement