Your Opinions on 2008 Conservancy Sale Completion?
Two years ago I bought PCL when it announced a three year installment sale of lands to a conservancy. Phase 1, $150M payable to PCL Dec. 2008. Phase 2, $200M payable to PCL in Dec. 2009. Phase 3 (last phase) $110M in Dec. 2010. This, I believe, has allowed PCL to keep it's dividend rate steady. It's not paying them from log sales. I recently sold my PCL at $38 for a small capital gain, but the dividends made it a good investment. I sold because the conservancy payments are about to end. I'd consider buying some PCL back at $25. Any comments on the above or information on how PCL will continue to pay dividends?
2Q'10 revenue 258M with 78M cash flow 35M 'earnings' PCL holds 250M cash Sawlog$ +30% yoy Sawlog production +30% yoy Real estate sales was 16.6% of revenue and that was recreation and non-stategic lands BTW sold for $2,150 per acre. Current pps values land at $1,200 per acre. Each $100 per acre over the $1,200 price should add $4 per share value. And remember PCL plants 70M seedlings each year. Buy it at $25 per share if you can LOL More like $32 on dips.