Investing in Lumber?

[weighit]

Heard a guy talking that the tornadoes that ripped through the multiple states will cause the lumber industry to go through the roof. They have been in a slack mode for the past few years and this will spurn them back into production to help with the home rebuilding. Sounded like it might work.

 

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[dscott67]

we were just offered $4.00 a ton for pulp on 500+ acres and the logger was gettin 16.00,,,we told him to vacate the premises ! so, i'm not sure if i would invest in any timber,lumber,etc..it's a volitile investment right now.the housing industry is not gettin any better, i'm in the trade,the housing issue is why timber(trees) prices are so low.but,it has not affected it to much on the prices at the retail level,if it were not for the storms/tornados(which is why the retail prices have not dropped with the timber prices to a practicle margin)my chances of working right now would be slim.i don't advise it.but then again,it depends on what aspect of the industry you want to put several thousand dollars into to make a profit !!..hope i helped in some sorta postive way!

 

[calisdad]

Go to one of the finance sites (yahoo has one) and look up earnings projections for Sierra Pacific, Georgia Pacific, Weyerhauser etc. We just had a local mill reopen after refitting for smaller logs and another hire more employees for cedar products but it could be a local phenomenon.

 

[dscott67]

Go to one of the finance sites (yahoo has one) and look up earnings projections for Sierra Pacific, Georgia Pacific, Weyerhauser etc. We just had a local mill reopen after refitting for smaller logs and another hire more employees for cedar products but it could be a local phenomenon.

that's a good possibility,sometimes trends are set that way and we are exporting alot of hardwoods i guess for chinese furniture maybe? anyway as i said,it depends on which aspect of that you want to invest in..

 

[moonshinner]

well,u talking about pulp prices,i live in eastern ky an people gets in the 20"s for chip wood,thats the land owner,lumber my be good for investment,because here loggers r clear cutting alot of land,lumber will have to go up because there is no lumber trees,they have chiped all the young trees,not very many lumber trees lelft

 

[dscott67]

here's something to chew on, Quote.."the timber market has in the last 10 years for hardwoods increased in value by 10%,that is cherry,walnut and white oak"...Quote "they don't have enough wood to feed their mills" said barbara baldwin,timber analyst at the University Of Georgia referring to the Chinese market. So it really don't make since to me(common) not (political) why after all these years timber prices basically came up only 10 percent when it is in demand by a market outside of the US.. and moonshine ,all states do not pay the same on tonnage,not alot of chippin around here,all those trees are either already at the mill or laying on the ground rotten from the tornados blowing them into toothpicks..so there's not alot left around here but pulp!! I am in no way saying that you should not invest in those markets,just research the other end,don't start out at the stump!!

 

[stefen]

Heard a guy talking that the tornadoes that ripped through the multiple states will cause the lumber industry to go through the roof. They have been in a slack mode for the past few years and this will spurn them back into production to help with the home rebuilding. Sounded like it might work.

For centuries tornados have been ripping thru the midwest and yet this is the first time that I've hear any talk about the lumber market (or lumber futures)...

Might see a slight increase when the housing market returns to normal...

 

[hombre_de_plata_flaco]

A friend of mine cruises timber for T&S Hardwoods and he said recycling has put a hurt on the timber business. That combined with better management practices. The forestry industry has almost managed itself out of business.

 

[idigdirt]

How about investing in Jesus. Now there's something that will give you a good return!

 

[stefen]

If you want to invest in lumber (wood product) buy stock size lumber and sell off in sizes used by knife makers / hobbyists, pistol & gun stock makers, and wood turners, and others.

For example, a 2 X 6 X 96 inch walnut board = 32 board feet @ $4.00/bf

This board will produce 16 ~ 2 X 6 X 6 turning blocks selling for $22.00 each...

That's a $224 profit on 1 ~ 8' board...

Harvest Buckeye, Redwood and other popular species in the wild and make $12 to $50/ bf...

Harvest cankers and sell the burl wood by the pound...

There is a thriving market in exotic wood that will outstrip and conventional lumber business...

Many of these businesses are working out of garages or barns...

Most are mail order...