COMPANY DESCRIPTION

Weyerhaeuser is a real estate investment trust. Co.'s segments are: Timberlands, which include logs, timber, minerals, oil and gas and international wood products; Wood Products, which include softwood lumber, engineered lumber, structural panels and building materials distribution; Cellulose Fibers, which include pulp, liquid packaging board and an equity interest in a newsprint joint venture; and Real Estate, which includes real estate development and single-family home building operations. As of Dec 31 2013, Co.'s Timberlands business segment managed 6.3 million acres of private commercial forestland worldwide and had licenses on 13.9 million acres of forestland located in Canada.

 

ECONOMIC MOAT

In our opinion WY has no economic moat.  WY relies on superior execution for success.

 

OUTLOOK

WY performance is improving due to a healing economy and improving employment. The overall health of the U.S. real estate sector impacts many facets of WY. Demand for logs from Weyerhaeuser's timberlands is largely determined by production of wood-based material. WY is looking for its seventh consecutive year of share-earnings gains in 2015.

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STRENGTHS

  • Broad product portfolio

  • Vast infrastructure base

  • Development of innovative products

WEAKNESSES

  • Negligible presence in key growth markets

  • Dependence on third parties for transportation services

THREATS

  • Intense competition

  •  Foreign currency exchange rate fluctuations in the US

  • Fluctuating timber prices

OPPORTUNITIES

  • Strategic upgrades and acquisitions

  • Positive trends in forest products markets 

The above report is for information purposes only, and is not a solicitation or offer to buy or sell any securities. Past performance is no guarantee of future performance. Neither diversification nor asset allocation ensures a profit or guarantees against loss. Before investing, investors should consider their risk tolerance, investment objectives, time horizon, available capital, and charges and expenses.  

 

The information presented in this report has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guranteed. All material is subject to change without notice. The views and opinions expressed are those of Focused Stock Research and/or WALT ST Investment Management, Ltd. and in no way reflect the views and opinions of Investment Consultants nor their Broker Dealers.

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