Shares trading below book value, a 5% dividend, and 4 million acres of land undervalued on the balance sheet

This company is a textbook example of a situation where the financial statements, market price, and fair value of assets tell three different stories. On a standard screener, you’ll see a revenue drop of more than 60%, a net margin over 56%, a P/E ratio below 7, and a dividend yield around 11%—and nearly every one of those numbers is an optical illusion. This was created by a combination of one-time gains from the sale of a foreign business and a special dividend that no one will ever repeat. Anyone who builds a thesis on this data is building it on sand.

Beneath the surface, however, lies tangible and rare assets: over 4 million acres of productive forest land in the best growth regions of the U.S., a newly strengthened lumber and plywood business, and a real estate platform capable of selling that same land to a solar developer for more than $10,000 per acre—many times its balance sheet value. The core of the investment thesis is as old as the sector itself: the public capital market…

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The information in this article is for educational purposes only and does not serve as investment advice. The authors present only facts known to them and do not draw any conclusions or recommendations for readers. Read our Terms and Conditions
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