International Paper

[Snowx800]

What do you think of this at 23.67

 

[Moemg]

Is it still giving good dividends ?

 

[Snowx800]

$1.26 per share this quarter. Seems like a great buy . It just is very volatile that's how I see it?

 

[FreeAtLast]

NEW YORK, Aug 9 (Reuters) - International Paper Co <IP.N> has extended its $3.3 billion hostile bid by a month to acquire rival packaging producer Temple-Inland Inc <TIN.N>.

 

[brewer12345]

IP is an ideal issuer to grab junk bonds from when the junk market blows up. There is tangible asset value in the timberland, so if it implodes and files for bankruptcy creditors have an asset to look to. The equity? Mysteries abound.

 

[haha]

IP is an ideal issuer to grab junk bonds from when the junk market blows up. There is tangible asset value in the timberland, so if it implodes and files for bankruptcy creditors have an asset to look to. The equity? Mysteries abound.

This is no longer true. At one time IP was the largest holder of southern pine in the world, but they sold 6ml acres in 2006 and sold some of their northern forests soon after. I believe they had another sale in 2009. So now they are essentially a fiber processor and marketer. Their 2010 10K reports ownership of 250,000 acres of forest in Brazil.

From 2010 10k:

ITEM 2. PROPERTIES
FORESTLANDS
As of December 31, 2010, the Company owned or
managed approximately 250,000 acres of forestlands
in Brazil, and had, through licenses and forest management
agreements, harvesting rights on
government-owned forestlands in Russia. All owned
lands are independently third-party certified for sustainable
forestry (under operating standards of the
Sustainable Forestry Initiative (SFI™) in the United​

States and ISO 14001 and CERFLOR in Brazil).


When they sold their 6mln acres of pine in the US south, they essentialy left the tree growing business, and became an industrial fiber processor, buying they pulp and chips from 3rd parties.

It may or may not be a good investment, but it is no longer a timber company.

The creme de la creme of US timber in public hands is Weyerhaeuser. It is now a REIT, but unfortunately it is also burdened by home building and forest products ( mills, etc) businesses which are very tied to US hombuilding. So it may lose it's dividend.

Overall, US timber ownership is transitioning from integrated forest and products companies, to timberlands being owned by partnerships, wealthy foundations and universities such as Harvard and Yale and other non-operating entities.

Ha

 

[Lakedog]

$1.26 per share this quarter. Seems like a great buy . It just is very volatile that's how I see it?

Did you mean $0.26? The dividend dropped to $0.03 in 2009 and has now come back to pre-crash levels.

Another one you might look at is the largest private timberland owner in the US now, Plum Creek (PCL), which operates as a REIT and has maintained a steady div for several years. They produce lumber, plywood, and other wood products in the PNW but own land over much of the country. PCL bought Georgia Pacific's 4 million acres of timberland in the southeast a few years ago.

 

[brewer12345]

Thanks, ha. I did not realize that.

 

[JakeBrake]

When I was a boy, I enjoyed hunting on IP Timberland, which was open (for the most part) to the public for hunting and other recreational pursuits.

Speaking of timberland, don't forget the Feds and the states own vast timberland acreage which produces forest products in competition with private timberland owners.

 

[Brat]

Speaking of timberland, don't forget the Feds and the states own vast timberland acreage which produces forest products in competition with private timberland owners.

Not much any more thanks to litigation in the name of conservation.