A timberland REIT is trading below the value of its land. Think about that. You can buy the trees, the dirt, and the squirrels for less than the dirt alone costs.
The summary says it has "several different growth opportunities." Trees grow. That is the whole business. Nobody needed a headline for it.
Retail traders will see "America" and "discount" in the same sentence and feel something stir. It is the same feeling they get at a Costco sample table. They will buy at the open and sell when a tree moves in the wind.
The bull case is simple. Land is real. You can stand on it. You cannot stand on your options position, though many have tried.
The bear case is also simple. The market has priced this stock below its assets for a reason. The market could be wrong. The market could also be a room full of people who have never held a chainsaw. Both can be true.
Here is what the chart says. Nothing. Charts do not read headlines. Charts do not care about acreage. A stock trading below asset value can stay there longer than you can stay married.
The article wants you to feel like you are buying America at a discount. You are not. You are buying a ticker symbol attached to a lot of wood, a spreadsheet, and a quarterly dividend decision made by people in a conference room.
Still, the pitch has a certain charm. Most of your portfolio is worth less than nothing. This one is worth more than its price. That is a better deal than your last three picks combined.
Buy the timberland if you must. Trees take decades to mature, which is roughly how long your thesis will take to work and how long your spouse will keep asking about it.
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