Weyerhaeuser: dancing as fast as they can!

Implications: The US Government has fashioned the Tax Laws to make it advantageous for large land owners like Weyerhaeuser to convert to a REIT.  This would be similar to what several Canadians (i.e. Canfor and SFK) have already done. Weyerhaeuser is one (if not the) largest landowner in the Pacific Northwest.   If anyone was considering converting to a REIT it would and should be Weyerhaeuser. So, why the delay....is it a case of cold feet?  We don't think so...rather, it's a case of a company being only able to do so much in a relatively short amount of time.  We think it's simply a case of Weyco catching its corporate breath.

Analysis: While it's very true that most observers believe Weyerhaeuser will eventually convert their extensive NW timber holding to a REIT, one must wonder how many major actions they can understake simutaneously?  Consider what they've already accomplished...they've sold off all their white paper mills to Domtar and their entire containerboard division (paper mills plus 80 or so box plants) to IP for $6 billion dollars and now are considering selling their Westwood Shipping Line (4 ocean vessels).  They are oviously anxious to reinvent themselves and have expressed their intention to become highly focused on just Fluff Pulp (where they already #1 in this business) and the Forest Products industry (dimension lumber, plywood, OSB, fabricated products, ect.) What they've done in such a short amount of time is truly noteworthy.