- Despite a worrisome lumber price surge, rising commodity prices will favor commodity companies and increase the investment attractiveness of Weyerhaeuser.
- However, high price volatility makes it difficult to value companies.
- Rather than forecasting the cycle itself, I tried to estimate the value using normalized price and current price.
- My valuation indicates that the current commodity price level gives us an investment opportunity.
- But investors should be prepared for short-term volatility.
For further details see:
Weyerhaeuser: Timberland REIT Valuation Amid High Volatility