Replies to post #6400 on The Rising Influence of Rising Affluence

[DewDiligence]

PCL—I wouldn't consider selling until the low/mid 50's, which is where I previously pegged the fair market value of the company's timberlands (net of balance-sheet offsets): #msg-43004163.

PCL itself has stated that FMV is in the 60's, so my analysis is undoubtedly conservative.

However, by the time such a price were realized, the FMV even by my conservative analysis would be apt to be even higher; hence, for all practical purposes PCL is a stock to be held indefinitely.

[DewDiligence]

PCL inks wood-pellet-supply agreement with UK utility:

http://finance.yahoo.com/news/plum-creek-finalizes-long-term-212600967.html

Plum Creek will deliver up to 770,000 tons annually of sustainably-managed wood fiber to two U.S. pellet manufacturing locations during the course of the 10-year contract. Drax plans to construct two pellet mills, one each in Mississippi and Louisiana, to convert wood fiber into pellets for export to its power station in the United Kingdom. Deliveries are scheduled to begin in 2014.

The source material for these pellets is “junk wood” that would otherwise be discarded, so PCL’s getting value for it is pure upside.

[DewDiligence]

PCL—The low/mid $50’s level we talked about in #msg-83600271 is no longer very far off.

[DewDiligence]

PCL closes above $50 for first time ever (eom).