WY
Weyerhaeuser Co
Industrial/Transportation, Event Driven/Special Sit
10/09/2013
Presented
| Date | 10/03/2013 |
| Price | $29.07 |
| Market Cap | $16.90B |
| Ent Value | $20.70B |
| P/E Ratio | 10.76x |
| Book Value | $10.09 |
| Div Yield | 3.3% |
| Shares O/S | 582.27M |
| Ave Daily Vol | 4,200,000 |
| Short Int | 1.60% |
Current
| Price | $33.05 |
| Market Cap | $24.04B |
| Weyerhaeuser Company, a forest products company, grows and harvests trees, builds homes, and manufactures forest products worldwide. It grows and harvests trees for use as lumber, other wood and building products, and pulp and paper. The company manages 6.4 million acres of private commercial forestland; and has long-term licenses on 13.9 million acres of forestland. It also offers timber; minerals, such as rock, sand, and gravel, as well as oil and gas to construction and energy markets; logs; timberland tracts; and seed and seedlings, poles, plywood, and hardwood lumber products. In addition, the company provides structural lumber products for structural framing; engineered lumber products for floor and roof joists, and headers and beams; structural panels for structural sheathing, subflooring, and stair treading for wood products dealers, do-it-yourself retailers, builders, and industrial users. Further, it offers building products comprising cedar, decking, siding, insulation, rebar, and engineered lumber connectors. Additionally, the company offers fluff pulp for use in sanitary disposable products; papergrade pulp for printing and writing papers, and tissues; specialty chemical cellulose pulp for use in textiles, absorbent products, specialty packaging, and high-bulking fibers; liquid packaging board converted into containers; and slush and wet lap pulp for manufacturing paper products. It also constructs single-family houses, as well as develops residential lots and land for construction and sale; and master-planned communities with mixed-use property. The company sells its cellulose fibers products through direct sales network, and liquid packaging products directly to carton and food product packaging converters; and wood products through sales organizations and distribution facilities. Weyerhaeuser Company has been elected to be taxed as a real estate investment trust. The company was founded in 1900 and is headquartered in Federal Way, Washington. |
Highlights
The presenter is long shares of Weyerhaeuser (WY) – the largest timberland REIT in the US - based on a sum-of-parts valuation, and believes the company’s shares could be worth at least $34 and as much as $40 per-share as the company monetizes certain assets. In addition to the equity, WY has a mandatory convertible issue outstanding that credit investors can play with upside past $34, but it is “trading a little rich” and he likes the risk/ reward on the stock better at present levels (high $20s).
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