Pope Resources L.P. (NASDAQ:POPE)

CAPS Rating: 5 out of 5

A publicly traded limited partnership engaged principally in managing timber resources on its own properties as well as those owned by others. Operates in three primary business segments: Fee Timber, Timberland Management & Consulting, and Real Estate.

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Member Avatar RonChapmanJr (92.99) Submitted: 6/4/2009 2:47:47 PM : Outperform Start Price: $23.70 POPE Score: +76.88

Own this in my RL portfolio so I'm adding it here so that I can keep track of it.

I like the dividend so hopefully it won't get cut.

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Member Avatar ChasingFreedom (84.37) Submitted: 5/21/2008 8:52:14 AM : Outperform Start Price: $29.00 POPE Score: +91.28

A no-brainer. Timber has taken a beatdown because of the market slowdown, but worldwide demand is on a steady upward climb with no end in sight in our lifetimes. Buy and hold forever.

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Member Avatar nutdoctor (54.40) Submitted: 3/26/2008 11:43:55 PM : Outperform Start Price: $25.19 POPE Score: +123.49

As the world gets smaller in terms of space and resources, this company's position becomes more valuable.

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Member Avatar trentschoneweis (90.10) Submitted: 8/28/2007 6:19:18 AM : Outperform Start Price: $31.55 POPE Score: +74.37

good p/e, even cash and debt, and a good dividend record.

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Member Avatar dbdog (< 20) Submitted: 7/17/2007 11:25:55 AM : Outperform Start Price: $37.17 POPE Score: +49.82

Simple, look at the assets. And, they [ the management] are extremely aware of the shareholders.

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Member Avatar barrettfodder (60.41) Submitted: 6/21/2007 7:58:46 AM : Outperform Start Price: $37.42 POPE Score: +44.96

Should have bought in years ago when I first started learning about the timber business. Many companies in the Southern and Northwester US that my family has dealt with in the past have made mention of POPE. They are a well managed and growing group.

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Member Avatar Stocks1843 (56.09) Submitted: 5/29/2007 8:55:28 PM : Outperform Start Price: $34.40 POPE Score: +60.80

Share Price: $45.

This company has a three pronged approach to making money. Valuing the logging and management segments, as they are the online consistent cash flow, the company should earn $15M in FCF from here on out. This estimate is very conservative and should be much higher. Using a DCF with r=20%, the present value of FCF is worth $90M. Assuming a growth rate of ZERO.

The company has a book value of $87M. The intrinsic value of these assets are significantly higher because former assets (real estate) sold for twice book value or higher! Even at conservative estimates, the intrinsic value of all the assets, ignoring real estate up for sale, is worth $110M.

Adding earnings and assets together, I came up with a value of $200M, the current Market Cap of the partnership. If you are looking for a discount rate of 15% then you have a value on your hands.

The little extras:

Real Estate: The company had a record year in 2006 for real estate and looks much better (earnings wise) than it really is; however, at the current price you are getting the entire real estate division for free!

Timber Portfolios: The company is making good decisions to grow shareholder wealth by creating a timber fund for hedge-funds to invest in. POPEZ created one fund last year and has a 20% stake in the $60M fund. The management is creating another fund aiming for $100M in 2007, which they will have another 20% stake. Along with a 20% share of the cash flows from these properties, POPEZ receives revenues for managing the timber. A wise decision by the management.

Management: The managers of the company are very unit-holder driven and look to always give a good return on capital (30+% last year). The company has been around for 150 years and as a one of the leading timber consultants in the country, has obviously proven themselves in the industry. They also increased their holdings in the company to almost 3% recently. This is not a large number, but an increase in investment is never a bad signal.

Dividend: The company also pays a small dividend. Currently at $1.12/year, this can be discounted back against inflation of 3% to value the company at $22.60 with a dividend growth rate of ZERO. A growth rate of 5%, not that unlikely, values the company at $45. While $22.60 this is half of the company's current price, mixed with the value of assets it is still a good play.

I bought it, I think you should too. I am not an industry insiders so if someone wants to read the last few annual reports and tell me where I am wrong on the numbers, feel free.

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Member Avatar clu2000 (84.65) Submitted: 3/28/2007 4:29:07 AM : Outperform Start Price: $32.59 POPE Score: +62.75

Great looking chart

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Member Avatar sciencebzzt (29.67) Submitted: 3/19/2007 12:10:51 PM : Outperform Start Price: $33.89 POPE Score: +51.04

I have this stock in my real portfolio.
These guys really maximize every aspect of their business. They're fundamentally a timber company, they own two large tree farms and grow, harvest and sell timber and timber products, that's their bread and butter.
But they squeeze out more value in a few other ways.
This company, as Pope or under a previous name, has been in the timber business for over 150 years; they use this experience by offering consulting and management services to other timberland operations. Basically someone with a tree farm could pay Pope to operate and manage the whole process of harvesting and selling their timber. Pope seeks out investment grade timberland to manage as well.
They're also in the real estate business. They converted poor quality timber land, or land where logging has recently been banned, or land close to certain roads into residential or commercial lots. They sell outright, or lease residential and commercial property; and they're building planned communities on large chunks of their land.
These guys are aggressive, they squeeze profit from anywhere they can.
Nice financials, they pay a nice little dividend, I like them.

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Member Avatar CharlesG1958 (76.05) Submitted: 3/6/2007 2:31:24 PM : Outperform Start Price: $33.23 POPE Score: +55.49

One of the six land management companies using the Pinchot program.

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Member Avatar 5SsmallcapDIV (78.68) Submitted: 2/26/2007 12:12:51 PM : Outperform Start Price: $33.43 POPE Score: +60.11

5 Star/Small cap/Pays dividend

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Member Avatar FringeElement (74.47) Submitted: 1/26/2007 12:31:00 PM : Outperform Start Price: $30.91 POPE Score: +73.54

Timber is a volitile sector and I don't know enough about it. Goin on SWAG with this. (Scientific Wild A** Guess)

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Member Avatar bassy31 (74.61) Submitted: 12/28/2006 5:55:09 PM : Outperform Start Price: $26.44 POPE Score: +110.95

An hour in, these guys strike me as a very

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Member Avatar stjoe56 (82.46) Submitted: 9/25/2006 11:31:30 PM : Outperform Start Price: $25.50 POPE Score: +109.84

Pope is a small-cap forest company. Given its master limited partnership status it offers (a) above average return plus (b) interesting tax planning. I have owned the stock for 3+ years.

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