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This post is the second in a series related to the Q3 2020 Forisk Research Quarterly (FRQ), which includes forest industry analysis and timber price forecasts for North America. The post includes excerpts from our featured research on applying long-term timber more…
This post includes notes on the application and adjustment of discount rates during periods of historically low interest rates, with examples related to timberland investments. This continues a discussion from my February 2020 post addressing questions related to discount rates more…
A summary of the advantages and disadvantages of applying and interpreting NPV generally and for forestry investments. Net present value (NPV) compares the value of cash flows (benefits) received in the future with the capital required for investment today. The more…
In the current coronavirus pandemic and recessionary environment, do traditional reasons for holding timberland investments still apply? In Timberland 2020: From High Hopes to Viral Mopes and Back Again, Forisk compares the long and short-term performance of private timberlands to more…
This is the second in a series related to the Q2 2020 Forisk Research Quarterly (FRQ) which includes forest industry analysis and timber price forecasts for North America. We entered 2020 expecting to navigate the tradeoffs of a slowing global more…
This post includes an excerpt from Forisk’s upcoming white paper “Timberland 2020: From High Hopes to Viral Mopes and Back Again.” The current pandemic and market volatility give us the chance to revisit the thesis and long-term benefits of owning more…
“Should we lower or increase our discount rate when valuing these assets?” asked the timberland investor, worried about impacts from the coronavirus (COVID-19) on trade, U.S. economic growth and asset values. Generally, discount rates represent the sum of a benchmark more…
In forestry, as in every natural resource or commodity-producing sector, excess inventories bleed prices. It’s that simple. The market requires lower prices to unload or workout surplus inventory. And anxious forest owners and disciplined log buyers may also realize that more…
“Better a diamond with a flaw, than a pebble without” – Confucious No measure is perfect. BMI, EBITDA, OPS+, all of these provide a relatively simple picture of something: weight, earnings, or offensive production. None of them tells the whole more…
“The future is not something to be predicted, but to be made.” – Professor Nick Montfort in The Future (The MIT Press, 2017) Discussions of inverted yield curves and equity dividend yields purport to clarify the tea leaves of investor intents more…