Weyerhaeuser (NYSE:WY) has done okay since my last update
on this timberland and wood products company, but I still believe the
share price doesn't reflect the full value of the company's assets and
operations. The company is still vulnerable to weakness in the U.S.
housing market, and I'm not thrilled about the long-term outlook for
lumber, but I think the shares may be past the nadir for sentiment
unless housing really struggles from here.
2019
won't be a banner year for EBITDA or cash flow, but I don't think the
company needs to revise the dividend, and there are some further
strategic moves the company may want to consider. With fair value in the
$30s, I think there are still sound arguments for owning these shares,
though they're probably not well suited to impatient investors.
Read more here:
Weyerhaeuser Should Be On More Stable Footing Now
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