Rayonier, Inc. (NYSE:RYN)

CAPS Rating: 4 out of 5

An international forest products company engaged in activities associated with timberland management, the sale and development of real estate, and the production and sale of high value specialty cellulose fibers.

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Member Avatar dinacrackin (83.94) Submitted: 11/19/2006 2:36:54 PM : Outperform Start Price: $21.49 RYN Score: +99.13

solid company..

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Member Avatar samr123 (80.54) Submitted: 10/4/2006 5:03:02 PM : Outperform Start Price: $19.92 RYN Score: +110.77

This company offer much to the long term investor. Aside form its 5% yield, steady growth from timber and land sales, it also offers a high value, high performance fiber operation derived from it's timber.

These fibers are used in, "cigarette filters, rigid packaging, LCD screens, ..., pharmaceuticals, cosmetics, detergents, food products; and absorbent materials that are used in disposable baby diapers, feminine hygiene products, ..., and nonwoven fabrics."

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Member Avatar MarcoTheBeast (< 20) Submitted: 9/22/2006 9:58:54 PM : Outperform Start Price: $19.40 RYN Score: +114.03

Rayonier has seen significant share price appreciation over the past couple of years after they converted to a REIT. This gives them a huge tax advantage as their effective tax rate is around 12-14% instead of the standard corporate rate of 35%.

They have lately tried to focus on their strongest business segments by selling off their fiberboard business. A major catalyst for growth in the coming years is the situation where a large proportion of the timberland they own in southern Georgia and northern Florida is becoming more valuable to develop than to use for growing timber. This increases the value of the assets they have on the books as well as boosts their income potential in the coming years as they are able to shift the land to uses that produce higher revenue.

In addition, since they are a REIT, they pay a very healthy 5% yield. While this is currently not included when calculating CAPS scores, this is a future enhancement that is hopefully coming soon!

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