Post by
forkliftguy on Nov 08, 2021 12:01pm
Resolute VS. Weyerhaeuser
Jim Cramer of " Mad Money " had the CEO of Weyerhaeuser on his show last Friday night . Cramer recommends Weyerhaeuser as a " BUY " . I din't have an issue with that , but I do have an issue where RFP is trading in relation to Weyerhaeuser . I realize that Resolute is more diversified with 4 divisions , but the bulk of their earnings have been with lumber . Here is a small comparison .:
1) Forward P.E. Weyerhaeuser is 16 ; Resolute is 3 . Advantage RFP
2) Price to book - Weyerhaeuser 2.77 ; Resolute 0.65 Advantage RFP
3) Revenue per share - Weyerhaeuser $ 14 .00 ; Resolute $44.00 Advantage Resolute
4) Cash minus debt - Weyerhaeuser minus 3 BILLION dollars ; Resolute minus $ 240 MILLION
advantage - Resolute
5) Book Value Weyerhauser $14 dollars a share U.S. ; Resolute $18 dollars U.S. Advantage Resolute
6) Shares outstanding - Weyerhaeuser 750 million ; Resolute 77 million Advantage Resolute
I realize that there are a lot of other factors involved which I don't have the time to mention ..
One of these stocks trades at 38 dollars a share U.S. , the other trades at 12 dollars a share U.S. Both very fine companies , but I think that the lower priced stock is significantly undervalued . It is currently my second largest position in my portfolio after Stelco . " Just one Retired Salesman's Opinion "