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Author: aleax Big gold star, 5000 posts Top Favorite Fools Global Fool Pro Community Winner Motley Fool One Everlasting Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77135  
Subject: SA bullish on PCL long-term Date: 4/28/2013 2:40 PM
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PCL is a REIT which owns and manages timberland in the US, and makes various wood-based products.

http://seekingalpha.com/article/1374901-plum-creek-look-for-...

The author's conclusion: "As the need for new buildings and spending increases on upgrading and repairing peoples current homes, Plum Creek is a company well situated well to capitalize on this trend". ([sic] on the repetition of `well` -- this is a copy and paste!-).

I've been long with a substantial PCL position for a long time, basically on Bismarck's theory of timberland investing, so well explained by Barton Biggs in an appendix to his "Hedge-hogging" book.

At this time, alas, it looks like a lot of investors agree with the SA article's thesis (which is "long-term" only in the loosest sense -- if you read the article you'll see the thesis should play out in 3 to 5 years at most -- as opposed to Bismarck's generational time scale, which I doubt any significant number of investors care about!-), so, PCL is hardly undervalued, at a P/E over 40 and a dividend yield just above 3%.

So, I won't be adding more at this time; I'll just keep holding patiently... but if I didn't have any timberland exposure I might perhaps consider initiating a small exploratory position even now.
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