Perhaps one or more stockaholics would like to share some thoughts on the timber industry? I believe wood is the future. Trees are ecologically beneficial, profitable, and wood is increasingly becoming a desirable building material. Many cities have had limits of 4 stories for wood structures. We are seeing this revised to 10 stories in many areas. Architects who are ecologically minded evangelize wood. I'd like to harness this trend and have made a few attempts over the years. I wouldn't say I've lost money on timber companies but I certainly haven't made any money to speak of. The timber industry is one of the most risky sectors going, as best I can tell. Even weed doesn't seem as risky. I've watched companies have off years and tried to find arbitrage. I've been able to predict troubled companies selling lease rights to more healthy companies during down years and I've profited from this. These gains have been counter-balanced by bark-beetles, fire, and other blights. Warm winters have allowed bark beetles to survive in far greater numbers than ever. There are huge tracts of west coast forest that are dead and brown when they should be green and lush. I don't see an upside to the industry but I do see increased demand and a huge move toward forestation. If only I could monitize that perspective.... Any thoughts?
Nice thought. I've been following Weyerhaeuser for many years. Thank you. I'm looking pretty closely at Norboard (OSB).
