Sell Deltic Timber (DEL) from my Jubak Picks 50 portfolio

Whoops! Missed one.

When I did my annual update of my long-term Jubak Picks 50 portfolio on January 13, I dropped Deltic Timber (DEL) from the portfolio in my post http://jubakpicks.com/2012/01/13/10-stocks-for-10-years-2012-edition-my-annual-update-of-my-long-term-jubak-picks-50-portfolio/ but I didn’t actually remove it from the portfolio page.

I’m taking care of that today.

I dropped Deltic Timber from the portfolio not because it’s a terrible stock—it’s not—but because I wanted more exposure to the big long-term trends that would work to Deltic’s advantage than I’d get with this company.

Deltic is a relatively small timber company with 450,000 acres of timberland in Arkansas. It produces timber, lumber, and medium density fiberboard. And the company’s real estate unit sells land for commercial and residential development. The company figures that about 57,000 acres of its 450,000 fit into the higher and better use category that means they’re good candidates for the real estate market. (This land is about 12 miles from downtown Little Rock.)

You can see the potential for a company like this by looking at where it is now in relationship to where it was when the real estate bubble was still inflated. Read more

Buy Deltic Timber (DEL)

Deltic Timber (DEL) owns 439,000 acres of timber land in Arkansas and Louisiana. Most of that the company uses to produce timber and pulp wood, but the company is turning an increasing piece—well at least increasing until 2007 put the kibosh on the real estate market—into commercial and residential projects including its flagship Chenal Valley, a 4,800 acre community built around two Robert Trent Jones golf courses.

 This year probably marked a bottom for Deltic’s real estate operations. Read more