Plum Creek Timber Company, Inc. (NYSE: PCL)
Plum Creek Timber Company, Inc. (PCL), is a publicly owned real estate investment trust that owns and manages timberlands in the U.S, yesterday announced they have entered a definitive agreement to merge with Weyerhaeuser, to create the world’s premier timber, land and forest company. The combined equity of the company is approximately $23 billion and the company will have 13 million acres of the most productive timberland in the country.
Plum Creek Timber Company, Inc. CEO Comments
“With an extraordinary set of combined assets and the proven value creation records of both Weyerhaeuser and Plum Creek, the combined company will offer a compelling opportunity for shareholders,” said Rick R. Holley, chief executive officer for Plum Creek. “These two companies are already best-in-class timberland managers with a relentless focus on sustainable resource management. The breadth and diversity of our combined land and timber assets uniquely position the new company to capitalize fully on the improving housing market, continue to capture Higher and Better Use land values across the combined portfolio, and create additional opportunities to build lasting value. Doyle Simons and I share a commitment to disciplined capital allocation and sustained value creation, and I look forward to working together as we build a great new company.” PR Newswire
PCL Technical Analysis
PCL gapped up in price yesterday to $45.19, up from the prior day’s close of $40.29, which is a 12% increase on the favorable news. Taking a look at the daily chart, we can see the last time PCL traded above this price level was on February 5th, when it closed at $45.21. On that occasion, PCL reached highs of $45.26 which is the 52 week high. With the gap up, the stock is sitting right at the 52 week high so it will be interesting to see if it can pop through it for a nice gain. PCL does have a high float of 172.7 million shares and was trading at 6 times the normal daily trading volume. PCL did reach pre market highs of $49, but gave back $3.81 at the open, or equivalent to 8%. For trading purposes, my entry point would have been $45.25 looking for a run to $47. My stop loss would have been $45, fearing anything below that and the stock would start to fill in the gap up.
Company Profile
Plum Creek Timber Company, Inc. (Plum Creek), incorporated on June 5, 1998, is a private timberland owner in the United States. As of December 31, 2014, the Company owned approximately 6.6 million acres of timberlands located in 19 states. The Company operates through segments: Northern Resources, Southern Resources, Real Estate, Manufacturing, Energy and Natural Resources, and Other. The Northern Resources segment, consisting of timberlands in Maine, Michigan, Montana, New Hampshire, Oregon, Vermont, Washington, West Virginia and Wisconsin. The Southern Resources segment, consisting of timberlands in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Texas, and Virginia. Its Energy and Natural Resources segment includes natural resource businesses that focus on opportunities for oil and natural gas production, construction aggregates and mineral extraction, wind power and communication and transportation rights of way. Its Real Estate segment includes development of certain properties, internally and through joint venture arrangements. Reuters
