WOOD - WOOD: Timber And Forestry Companies Are Probably Cheap
- WOOD invests in timber and forestry companies. The portfolio is concentrated, and cyclically the fund is not well positioned.
- The fund has also been trading in a range for some time, all through 2021 and 2022 so far.
- However, a simple valuation would suggest implied returns are high, probably unduly so.
- Investors will therefore probably be compensated well for holding WOOD even as the United States heads into the later stages of its current business cycle.
- Earnings out-performance would also leave the potential for per-annum performance above 15%.
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WOOD: Timber And Forestry Companies Are Probably Cheap