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.
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.
Understanding Weyerhaeuser’s Divestiture Policy
Weyerhaeuser (WY) has undertaken several divestiture policies in order to dispose of its underperforming and non-core businesses.
How Weyerhaeuser Fared in 2Q17: The Details
The growing economy has helped REITs including Weyerhaeuser (WY), Rayonier (RYN), Resolute Forests Products (RFP), and International Paper (IP) reap higher profits.
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.
Farallon Capital initiates position in Tim Hortons
Farallon Capital Management started a new position in Tim Hortons Inc. (THI) during the third quarter of 2014. The position accounted for 2.62% of the fund’s 3Q14 portfolio.
CalPERS adds new position in TRI Pointe Homes
TRI Pointe Homes is one of the top ten–largest public homebuilders by equity market capitalization in the US. The company reaffirmed its 2015 outlook for earnings per diluted share in the range of $1.25 to $1.40.
How Weyerhaeuser Compares with Peers
The expected performance of timberland REIT Weyerhaeuser (WY) for the rest 2017 and in 2018 can be best understood by its valuation multiples.
How Weyerhaeuser Treats Its Shareholders
REITs (real estate investment trusts) usually provide generous returns to their shareholders in the form of dividends or share buybacks.
Is Weyerhaeuser Maintaining a Strong Balance Sheet?
REITs (real estate investment trusts) depend mostly on debt for their day-to-day functioning and working capital.
How Weyerhaeuser and REITs Can Fight the Interest Headwind
After thriving for a long time in a low interest rate environment, REITs (real estate investment trusts) are now facing a high interest rate.
How the Rising Interest Rate Affects REITs like Weyerhaeuser
REITs (real estate investment trusts) depend on debt and equity for their working capital, and so they’re directly impacted by the Fed’s interest rate policy.
Inside the Weyerhaeuser-Plum Creek Merger
Timberland REIT (real estate investment trust) Weyerhaeuser (WY) owns almost 13.1 million acres of timberlands across the US.
What Lies ahead for Weyerhaeuser in 2017?
Timberland REIT (real estate investment trust) Weyerhaeuser (WY) expects to continue its growth trajectory for the rest of 2017.
What Strong Wood Means for Weyerhaeuser’s Momentum
Timberland REIT (real estate investment trust) Weyerhaeuser (WY) has been able to use the opportunities of the booming housing sector to its advantage.
Behind Weyerhaeuser’s Growth Trajectory
Timberland REIT (real estate investment trust) Weyerhaeuser (WY) reported upbeat earnings results for 2Q17, backed by higher sales and prudent cost management.
How Weyerhaeuser and Timberland REITs Came through the Fire
Timberland REITs (real estate investment trusts) in the US don’t seem to be in doubt about their continued growth momentum in the near future.
How Did Small-Caps Outperform Large-Caps Last Week?
Small-caps under $10 billion market capitalization outperformed large-caps last week and rose 3.5%. The sense was that the global sell-off has eased for now and investors may be turning bullish.
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.
Real Estate Investment Trusts Underperformed the Broad Market
For the week ending November 20, 2015, the iShares US Real Estate ETF and iShares Mortgage Real Estate Capped underperformed the SPDR S&P 500 ETF Trust.
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.
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.
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.
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.
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.
SPY Fell by 0.34% in the Wake of the US Trade Report
According to the US International Trade Report, the trade deficit widened in August to $48.3 billion from $41.8 billion in July.
Farallon Capital sells stake in Weyerhaeuser Co.
Farallon Capital Management sold its position in Weyerhaeuser Co. (WY) during the third quarter. The stock accounted for 1.16% of the fund’s total 2Q14 portfolio.
Farallon Capital starts new position in International Game Technology
Farallon Capital Management initiated a position in International Game Technology (IGT) during the third quarter. The position accounted for 2.21% of the fund’s 3Q14 portfolio.