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guliamo

The inventory that keeps growing... (RYN)

May 10 at 4:26 ET (By guliamo)

Symbols: RYN

Rayonier is a timberland company that owns 10's of thousands of would land acres. They chop down a few acres, then move to the next in a cycle that allows re-growth. No need to explain how important wood is to many aspects of our life but wood is also good as an investment and a great hedge against a volatile market. If Rayonier doesn't like the current price it's offered for it's wood, it simply doesn't have to chop any - the inventory keeps growing, literally, on the tree - so no warehousing costs and no depreciation. Since the housing slowdown, RYN has been beaten up with the rest of the field, but not for a good reason. So if you are looking for a great way to play it solid and get a 4.6% dividend while you're doing it, Rayonier is the play for you.

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