4-Star Stocks Poised to Pop: Plum Creek Timber

Recs

8

Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, timberland operator Plum Creek Timber (NYSE: PCL) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Plum Creek's business and see what CAPS investors are saying about the stock right now.

Plum Creek facts

Headquarters (Founded)

Seattle (1989)

Market Cap

$5.29 billion

Industry

Real Estate Investment Trust (REIT)

Trailing-12-Month Revenue

$1.5 billion

Management

CEO Rick Holley (since 1999)
CFO David Lambert (since 2006)

Return on Equity (Average, Past 3 Years)

14.8%

Cash/Debt

$351 million / $2.79 billion

Dividend Yield

5.2%

Competitors

Weyerhaeuser (NYSE: WY)
Potlach

CAPS Members Bullish on PCL Also Bullish on

Procter & Gamble (NYSE: PG)
Johnson & Johnson (NYSE: JNJ)
General Electric (NYSE: GE)

CAPS Members Bearish on PCL Also Bearish on

Simon Property Group (NYSE: SPG)
Citigroup (NYSE: C)

Sources: Capital IQ (a division of Standard & Poor's), Yahoo! Finance, and Motley Fool CAPS.

On CAPS, 93.6% of the 630 members who have rated Plum Creek believe the stock will outperform the S&P 500 going forward. These bulls include RayRayP and CAPS All-Star sandvig, who is ranked in the top 0.5% of our community.

Less than two weeks ago, RayRayP strongly advised Fools to not knock wood:

Plum Creek is a strong diversified company. ... I have watched it grow in a good and bad economy. They own lots of timber, which grows every year. [M]oney may not grow on trees, but when trees grow their value increases. They are a large land holder. Real estate is a product that cannot be reproduced.

In an earlier pitch, sandvig shows he can see the forest for the trees:

Sooner or later, people will want new homes, and builders will build new homes. When that happens, they will need lumber. Until then, it is a great time to watch your trees grow and collect a nice dividend. It is an aspect of the construction materials industry where it is relatively inexpensive to sit on the sidelines until things get better.

What do you think about Plum Creek, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

Like this article? Get our best articles delivered direct to your inbox at no cost. Sign up for Foolwatch Weekly by entering your email below.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Procter & Gamble and Johnson & Johnson are both Motley Fool Income Investor picks. The Fool owns shares of Procter & Gamble and Plum Creek and wrote a "strangle" option on Plum Creek. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 1031780, ~/Articles/ArticleHandler.aspx, 11/21/2009 3:37:02 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

The Must-Read Story on Fool.com
An Open Letter to the Federal Reserve

Related Tickers

11/20/2009 4:00 PM
JNJ $62.31 Up +0.37 +0.60%
Johnson & Johnson CAPS Rating: *****
WY $37.86 Down -0.92 -2.37%
Weyerhaeuser Compa… CAPS Rating: **
PG $61.80 Down -0.35 -0.56%
The Procter & Gamb… CAPS Rating: *****
GE $15.59 Down -0.17 -1.08%
General Electric C… CAPS Rating: ****
SPG $72.56 Down -1.35 -1.83%
Simon Property Gro… CAPS Rating: *
PCL $34.20 Up +0.04 +0.12%
Plum Creek Timber… CAPS Rating: ****
C $4.20 Down -0.06 -1.41%
Citigroup, Inc. CAPS Rating: ***

Community: Investing Wiki

Term Of The Hour

Immediate or cancel: Immediate or Cancel (IOC) is a condition a trader or investor can include in his/her purchase or sale of a stock

Want to learn more or edit this definition?
Click here to read more!