Plum Creek Timber Co Inc
Market Cap Analysis: Are Investors Still Nervous?
Large-cap stocks above $10 billion account for 87.3% of the Financial Select Sector SPDR Fund (XLF). These stocks have lost 4.8% in the past year.
The Timber Industry and Its Relationship with REITs
The timber industry provides employment to over 1.4 billion people and makes products worth more than $200 billion annually.
Analyzing the Valuations of Weyerhaeuser and Plum Creek Timber
Analysts on Wall Street seem quite positive about the Weyerhaeuser and Plum Creek Timber securities. Eleven analysts are in support of buying the former.
Analyzing Plum Creek Timber’s Merger with Weyerhaeuser
Plum Creek Timber (PCL) generated returns of 14.6% last week, backed by news of a merger with Weyerhaeuser (WY). WY bought PCL for $8.44 billion.
Can SPLV’s Fund Flow Catch up with USMV’s Flow?
Both USMV and SPLV saw healthy growth in their volumes traded since 2011. Volumes of USMV shares traded per day grew faster than SPLV’s share volumes.
Parsing the Plum Creek Timber–Weyerhaeuser Merger: Part 2
In the MAE (material adverse effect) clause of the Plum Creek Timber–Weyerhaeuser merger, there’s a disproportionate effect clause, so if something affects PCL specifically, it is considered a MAE.
Weyerhaeuser on Its Way to Acquire Plum Creek Timber
Stocks at the top of the SPY ETF on November 9 were Plum Creek Timber, Apache, and Norfolk Southern. They gained 17.3%, 13.2%, and 11.0%, respectively.
Will Arbitrageurs Set up the Plum Creek Timber-Weyerhaeuser Deal?
Given the antitrust risk in the Plum Creek Timber-Weyerhaeuser merger, it probably should trade at a risk-to-reward ratio of about 5:1, which works out to a spread of $1.66 and an annualized spread of 9%.
Risk-to-Reward Ratio of the Plum Creek Timber-Weyerhaeuser Merger
The spread in the Plum Creek Timber-Weyerhaeuser merger is trading slightly negatively (about 6 cents), but the positive dividend carry gives the deal a positive spread.
Could the Plum Creek Timber-Weyerhaeuser Merger Get Competitive?
In the Plum Creek Timber-Weyerhaeuser merger, Weyerhaeuser is paying about 7.4x trailing-12-month revenues and 25.4x trailing-12-month EBITDA.
Rationale for the Plum Creek Timber-Weyerhaeuser Merger
In the Plum Creek Timber-Weyerhaeuser merger, Weyerhaeuser (WY) and Plum Creek Timber (PCL) anticipate annual cost synergies of $100 million.
Basics of the Plum Creek Timber-Weyerhaeuser Merger
The equity value of the Plum Creek Timber-Weyerhaeuser merger is about $8.4 billion and $11.4 billion if you include debt.
The Plum Creek Timber-Weyerhaeuser Merger
In the Plum Creek Timber-Weyerhaeuser merger, Weyerhaeuser Company (WY) has agreed to buy Plum Creek Timber Company (PCL) for $8.4 billion in stock.
A Comparative Analysis of SPLV’s Portfolio with the Market
SPLV’s top five holdings are Plum Creek Timber (PCL), Paychex (PAYX), PepsiCo (PEP), ACE (ACE), and Republic Services (RSG).
An Overview on SPLV’s Low Volatility Holdings
SPLV maintains a portfolio of 100 stocks on the basis of minimal volatility. It majorly invests in the financial, consumer staples, and industrial sectors.
A Fund Flow Analysis of SPLV
For the current year, SPLV’s share redemptions have exceeded share purchases, which has resulted in negative fund flow, or an outflow, for the ETF.
A Structural Analysis of SPLV
The PowerShares S&P 500 Low Volatility ETF (SPLV) seeks to replicate the performance result of the S&P 500 Low Volatility Index.
How Does Plum Creek Timber Compare to Its Peers?
The price-to-book value ratios of Plum Creek Timber, Weyerhaeuser, Rayonier, Louisiana-Pacific, and Potlatch are 4.67x, 3.08x, 2.04x, 2.39x, and 5.83x.
Plum Creek Timber’s Income and Revenue Rose in 3Q15
After its 3Q15 earnings report, Plum Creek Timber fell by 0.15% to close at $40.79 per share as of October 26, 2015.
Minimum Volatility Portfolios of USMV and SPLV Reduce Risk
The iShares MSCI USA Minimum Volatility ETF (USMV) selects stocks for its portfolio on the basis of volatility. USMV’s top holdings include AT&T (T), McDonald’s (MCD), and AutoZone (AZO).
A Must-Read Comparative Analysis of SPLV and USMV
The iShares MSCI USA Minimum Volatility ETF (USMV) and PowerShares S&P 500 Low Volatility Portfolio (SPLV) are two smart beta ETFs that include only those stocks from the S&P 500 index (SPY) that have low volatility.
Understanding the Investment Strategy of SPLV
SPLV currently manages a total portfolio of $4.48 billion distributed over 100 stocks. It has a net expense ratio of 0.25%
REITs Fall Last Week: Has Real Estate Rally Finally Lost Steam?
In real estate, US REITs continued to correct, and REITs in XLF fell 2.40% last week. XLF is composed of 23 REITs, and 22 of those stocks closed the week in red.
Fairholme Lowers Its Stake in St. Joe
In 4Q14, St. Joe’s revenues fell by more than half from 4Q13 to $15.7 million, as real estate sales dropped by 76% and timber sales fell by 85%.