Sunday, March 02, 2008

Lumber and Forestry Companies

With the move towards the production of renewable transportation biofuels from nonfood sources, such as lumber and wood waste, maybe it is time to look at lumber and forestry stocks.

Weyerhaeuser Co. (WY) , the largest lumber company in the United States, manufactures, and sells forest products. The stock has a P/E of 17 , a PEG of 7.58 , and a yield of 3.80% .

Deltic Timber Corp. (DEL) harvests timber and sells lumber throughout the United States The stock has a P/E of 55 , and a yield of 0.60% .

Universal Forest Products Inc. (UFPI) produces preserved and unpreserved dimensional lumber. The stock has a P/E of 26 , and a yield of 0.40%.

Pope Resources LP (POPEZ) is a limited partnership that manages timber resources. The stock has a P/E of 12 , and a yield of 4.20% .

MAXXAM Inc. (MXM) grows and harvests redwood and Douglas-fir timber, and produces logs and lumber. The stock has had negative earnings.

Masisa S.A. (MYS) is a forestry and lumber company in Chile. The stock has a P/E of 29, a PEG of 1.05, and a yield of .6%.

Aracruz Celulose (ARA), which is based in Sao Paulo, Brazil, is one of the major manufactures of pulp in Brazil, and is the world’s leading supplier of eucalyptus pulp. Their shares are traded on the Sao Paulo, New York and Madrid stock exchanges. The stock has a P/E of 12, a PEG of 7.35, and a yield of 2.4%.

One of the largest pulp and paper companies in Brazil, Votorantim Celulose e Papel (VCP), manufactures printing and writing paper, coated paper, tissues, labels and thermal paper. Votorantim owns two paper and pulp mills located in Jacarei and Luiz Antonio, and two paper mills in Guaiba and Eunapolis. In addition to selling throughout Brazil, Votorantim also markets and exports its products internationally. The stock has a P/E of 5 and a PEG of 1.82.

Louisiana-Pacific Corp. (LPX) is a manufacturer of wood products for new home construction, repairs, remodeling, and manufactured housing. The stock has had negative earnings, and a yield of 5.3% .

Author does not own any of the above.

By Fred Fuld at

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