Short-term traders sprint like hares, often hopping between speculative hunches and under-researched bandwagons. Fools, on the other hand, are content to sit on the tortoise's shell, armed with a mantra as relevant today as it is during bull markets: slow and steady wins the race.
In a market environment like this, tortoises are admittedly no less susceptible to short-term setbacks than their hippity-hoppity counterparts, and long-term investment specialist Brookfield Asset Management
Brookfield Infrastructure posted adjusted operating cash flow of $13.1 million for the third quarter, representing a 25% decrease from the prior year. Net income reversed course from a $5.3 million gain in 2007 to a $1.4 million loss for the latest quarter. Despite solid returns from the company's Chilean electric transmission lines, thanks to a retroactive rate hike and favorable currency exchange rates, the third quarter was broadsided by severe weakness from the timberlands segment.
Brookfield offered a decidedly negative outlook for the timber industry -- echoed by recent results from Weyerhaeuser
BIP will divest a minority stake in non-core transmission line assets in Brazil for anticipated proceeds of $270 million. Combined with a sizable credit facility, the company now expects to have $600 million in its coffers with which to capitalize on the bargains available to grow its asset portfolio. For starters, Brookfield Infrastructure will invest $103 million to maintain a 30% interest in Longview Timber Holdings, as that company issues shares to purchase nearly 68,000 acres of timberland in Washington.
With a 7% dividend yield exceeding those of even REIT-structured timberland plays like Rayonier
Brookfield Infrastructure Partners L.P. is a Motley Fool Inside Value selection. Brookfield Asset Management is a Motley Fool Global Gains recommendation. Try any of our Foolish newsletter services free for 30 days.
Fool contributor Christopher Barker captains yachts and writes about stocks. He can also be found blogging actively and acting Foolishly within the CAPS community under the username TMFSinchiruna. He owns no shares in the companies mentioned. The Motley Fool has a disclosure policy.
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