Wood and One-Armed Bandits
Ok, I've got two more interesting investment ideas that I came across this afternoon courtesy of Market Folly's "What We're Reading". The first came to me after reading a really interesting bullish article on lumber prices. It got me thinking that now might be a good time to pick up shares of some of the timber REITs that are out there.
One that I personally like is Rayonier (RYN). It's a timber REIT that currently yields 3.5% with a potential additional catalyst:
Alex Klabin made a compelling case for investing in Rayonier at the November Invest For Kids Chicago conference. He believes that the company is currently 30% to 60% undervalued and that it could begin to unlock that value thorugh a potential spin-off of its fiber business in 2013 or 2014.
‘Super cycle’ for forest products expected to send lumber prices up in 2013
The second idea comes from a bullish write-up on Las Vegas Sands (LVS). The author of this piece believes that shares of LVS are seriously undervalued, not because of its casino operations, but because of its valuable real estate.
The author contends that if LVS were to split up into a mall REIT, a lodging REIT and a casino operator (somewhat similar to what Penn National Gaming is proposing) that its stock, whcih sits at $43 today, would be worth $85.
He goes even further saying that in 5 years, mainly as a result of growth in Asia, the stock could be worth $170.
Now I don't know about the latter part, but the undervalued realestate and potential conversion into a REIT are certainly intriguing.
Double Your Money on the Real Estate of Sheldon Adelson's Empire