Track market-moving stories before they get noisy

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In a previous article we showed that at private timberland values, Weyerhaeuser’s (WY) 9.74 million owned acres are worth $26.2B which demonstrates a substantial gap between asset value and WY’s valuation.

Since then, new data has come out showing that timberland values have continued to rise while WY’s stock price has continued to fall. It has created a historically wide disconnect between public and private pricing with WY trading at 50% of net asset value.

We shall begin by showing the disparate movement of underlying asset value with WY’s stock price and follow with a look at what a 50% discount to NAV means in this asset class with WY’s capital structure.

Value up – price down Timberland value is best measured by actual transactions that take place. FRC and Fastmarkets compiled transaction data to show average transaction price per acre over time.

Forest Resource Consultants

Source

Transaction values generally rose from about $1,800 per acre in 2018 to just over $2,500 per acre in 2025.

That is roughly what one would expect in an inflationary period. Timberland values have continued to rise in 2026. NCREIF reports timberland appreciation of 3.28% year-over-year in 1Q26 and another 0.61% in 2Q26

NCREIF

In 2026 timberland values have been rising at a pace slower than inflation. This is likely due to rising interest rates which mathematically pull down the value of long duration assets.

Nonetheless, timberland values are up in 2026. Contrast that with WY’s stock price down 20%.

SA

WY was already steeply discounted to asset value in 2025. I thought it was a great deal buying it at 66% of NAV.

So far, I have been quite wrong on the stock price. However, I have mostly been right on the fundamentals. Key earnings metrics are showing excellent current year and future growth.

Below are the consensus estimates of Wall Street analysts covering WY:

S&P Global Market Intelligence

2026 is coming in substantially higher than 2025 in FFO, AFFO, revenue and EBITDA. Growth is forecast to accelerate into 2028 with FFO rising 83% from 2025 levels. 2028 EBITDA is roughly 70% higher.

Good things are happening at the company. They have innovative products like TimberStrand and operate mills and timberlands with superior efficiency to competitors.

Mill curtailments across Canada and smaller operators in the U.S. are materially reducing competition which has kept lumber prices stable despite the slowdown in housing driven by high mortgage rates.

Tradingeconomics

7.5% mortgage rates are a tough operating environment for the entire housing industry. It seems the market has painted the industry with a broad bearish brush, selling nearly all participants in unison.

The selloff has been agnostic to valuation and agnostic to individual company fundamentals. In my opinion, WY selling down an additional 20% in 2026 from an already highly discounted level has taken it to an absurd discount.

Profound mispricing

WY’s consensus NAV is $37.16

S&P Global Market Intelligence

At today’s $18.84, it is trading at 50.7% of NAV.

REITs historically trade mostly between 90% and 105% of NAV. Occasionally, something slips through the cracks or has underlying problems that can result in substantially deeper discounting.

We have observed 50% of NAV magnitude of discounting primarily in the following types of companies:

Microcaps Extremely high leverage (80%+ capital structure is debt/preferred) Misaligned management (RMR companies, Ashford companies) Troubled asset class (office and malls) WY stands out because it distinctly doesn’t have the problems above.

Market share leader as the largest timberland owner in the U.S. Large cap Investment grade balance sheet (BBB) Respected management that outperforms on key operating metrics Perhaps the market is viewing and pricing timberland as a troubled asset class. I think there is a big difference between a cyclical downturn and structural damage.

Lumber is absolutely in a cyclical downturn, but I haven’t heard any legitimate talk of it being a permanently impaired industry. Eventually, houses will have to be built as there is already a housing shortage.

50% of NAV in a historical context In order for the discount at which WY trades to make sense there would have to be legitimate risk that timberland values could drop enough to close the gap in that direction.

Timber/lumber is a highly stable industry that has been around for centuries and through dozens of business cycles. I want to examine what a 50% discount means in a stable industry, so we shall look at some of the most severe downturns in history to see what happened to asset values.

Housing bubble – home prices declined 18.9% peak to trough.

FRED

Prices peaked at an indexed level of 380 in 2007 and dropped to a 308 trough in 2012. That is an 18.9% decline from peak to trough.

The USDA documents the largest agricultural land value decline of the century at 37% and it happened during the Great Depression which hit simultaneously with the physical damage of the Dust Bowl.

“Agricultural land values saw the largest percentage declines of the century in the early 1930s, the beginning of the Great Depression. Agricultural land values dropped 37 percent over a period of 3 years and remained between $30 and $33 per acre throughout the 1930s.”

In both cases, asset values rebounded sharply and sustainably after the trough.

I posit that what WY is dealing with is a run-of-the-mill housing recession brought on by a sharp rise in mortgage rates.

It is nowhere near the severity of the housing bubble popping in the Great Financial Crisis or the Dust Bowl amidst the Great Depression.

Even in such severe cases, the 50% discount at which WY trades would be enough to more than offset the drawdowns in asset value. Note that timberland values have actually risen so far in 2026. They may not decline at all in this cycle as land tends to be a great asset class in a higher than target inflation environment.

When the housing cycle eventually turns, WY will be the largest operator in an environment where competition has been substantially shrunk due to curtailments. It takes years for those competing mills to come back online, and WY did not have to shut down operations due to higher operating margins. WY has been strongly EBITDA positive through the entire downturn, positioning it to capture significant market share.

Risks to WY I think there is a decent chance WY misses estimates in 3Q26 due to the timing of changes in interest rates. Through the first half of 2026, interest rates and mortgage rates were stable.

Suddenly, in 3Q26, mortgage rates shot up to 7.5%

Tradingeconomics

This likely had an acute depressive impact on housing activity.

WY and analysts were forecasting a somewhat weak environment, but I don’t think guidance was anticipating the sharp rise in rates. Lumber prices held up, but volume suffered.

In terms of overall valuation, I don’t think a weak 3Q26 is all that impactful. However, a miss could cause further damage to WY’s stock price in the near term.

The bottom line

WY is trading at profoundly cheap levels that don’t make sense for a company of its caliber. While it is difficult to predict the cadence of recovery in stock price, I think buying at these levels will eventually be rewarded with strong returns as the stock price eventually moves toward NAV.

SummaryWeyerhaeuser offers discounted access to high-quality forest assets and cyclical industrial recovery, with a Buy rating and a $23.07 weighted target price.Dividend yield stands at 4.3%, but recurring income is not fully covered; dividend sustainability depends on improved free cash flow and industrial recovery.Valuation is based on a conservative sum-of-the-parts, with regional land values, normalized industrial EBITDA, and prudent adjustments for liabilities and project risks.Key monitoring items include realized prices, industrial margin, Monticello project expenditure, and cash conversion, as recovery is needed to secure long-term dividend coverage. Darinburt/iStock via Getty Images

Thesis in a Nutshell Weyerhaeuser Company (WY) is providing access to a large portfolio of high-quality forest assets together with the possibility of industrial recovery at a price of $19.61, which represents a clear discount; yet, since the

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Key Takeaways Weyerhaeuser beat earnings estimates as Wood Products EBITDA rose sharply on stronger lumber pricing.WY raised 2026 Strategic Land Solutions EBITDA guidance after expanding climate-related projects.Weyerhaeuser trades at a premium valuation as housing and commodity risks remain in focus. Weyerhaeuser Company (WY - Free Report) is showing signs of an earnings recovery, but the stock does not offer an easy buy case. Second-quarter results beat expectations and Wood Products improved sharply, while Climate Solutions and engineered wood investments add longer-term growth avenues.

The counterweight is valuation. WY trades well above its sub-industry, sector and the S&P 500 on forward earnings, while housing demand and commodity pricing remain uncertain.

WY's Earnings Recovery Supports the Bull CaseSecond-quarter adjusted earnings of 13 cents per share topped the Zacks Consensus Estimate of six cents by 116.7%. Net sales of $1.87 billion exceeded the $1.80 billion consensus mark by 4%, while Wood Products adjusted EBITDA rose to $129 million from $71 million sequentially.

Management expects higher lumber production and sales volumes in the third quarter and slightly lower unit manufacturing costs. Engineered wood products also improved in the second quarter, with adjusted EBITDA rising to $54 million from $39 million.

Weyerhaeuser's Climate Assets Add OptionalityClimate Solutions generated $126 million of sales in the first half of 2026, including a $94 million conservation easement completed in the first quarter. Weyerhaeuser's second solar site began operating in the second quarter, with three additional solar developments under construction.

The company also received permits for its first biocarbon facility near its McComb, MS, lumber mill. Weyerhaeuser raised full-year 2026 Strategic Land Solutions adjusted EBITDA guidance by $25 million to approximately $450 million, broadening its earnings sources beyond timber and wood products.

WY's Valuation Leaves Little Room for ErrorWY's forward 12-month price-to-earnings ratio stands at 49.94, compared with 27.18 for its Zacks sub-industry, 20.3 for the Zacks Construction sector and 20.71 for the S&P 500. The stock's five-year median is 30.18.

That spread makes execution more important. Investors need stronger earnings improvement to justify a multiple already above relevant benchmarks, leaving less room for operating setbacks or a slower recovery.

Weyerhaeuser's Housing Exposure Keeps Risk ElevatedDemand remains exposed to housing affordability, mortgage rates in the mid-6% range and weak consumer confidence. Repair-and-remodel activity was steady but muted in the first half, while OSB adjusted EBITDA posted a $6 million loss in the second quarter as supply exceeded demand and costs remained elevated.

Commodity sensitivity compounds the risk. Management estimates that a $10 change in lumber prices changes annual EBITDA by roughly $50 million. Louisiana-Pacific Corporation (LPX - Free Report) , another housing-linked wood-products producer, reported second-quarter OSB sales down $68 million year over year as prices and volumes declined. Rayonier Inc. (RYN - Free Report) , which now combines timberlands and wood products following its January merger with PotlatchDeltic, offers a related reference point for the same timber-and-lumber cycle.

WY's Hold Signal Matches the Trade-OffBottom line, WY's investment case remains balanced rather than decisive. Earnings recovery, Wood Products improvement and land-based growth opportunities support the outlook, but a premium valuation and housing-linked volatility keep the risk-reward from looking straightforward.

The stock currently carries a Zacks Rank #3 (Hold), pointing to a balanced short-term stance rather than a clear Buy signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Its Value Score of D, Growth Score of F, Momentum Score of D and VGM Score of F are less favorable readings within the Style Score framework, which is designed to complement the Zacks Rank. The score mix indicates that value, growth and momentum characteristics are not currently among the stronger Style Score profiles, leaving the fundamental recovery as the key area to watch.

, /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported its second quarter 2026 financial results. The company's earnings release and associated materials are available on the Investors section of the company's website, www.weyerhaeuser.com. In addition, the earnings release has been furnished on a Form 8-K with the U.S. Securities and Exchange Commission and is available at www.sec.gov.

EARNINGS CALL INFORMATION
The company will hold a live webcast and conference call at 7 a.m. Pacific (10 a.m. Eastern) on July 31, 2026, to discuss second quarter results. To access the live webcast and presentation online, visit the Investors section on www.weyerhaeuser.com on July 31, 2026.

To join the conference call from within North America, dial 877-407-0792 (access code: 13755108) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13755108). Replays will be available for two weeks at 844-512-2921 (access code: 13755108) from within North America, and at 412-317-6671 (access code: 13755108) from outside North America.

ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900 and today owns or controls more than 10 million acres of timberlands in the U.S., as well as additional public timberlands managed under long-term licenses in Canada. Weyerhaeuser has been a global leader in sustainability for more than a century and manages 100 percent of its timberlands on a fully sustainable basis in compliance with internationally recognized sustainable forestry standards. Weyerhaeuser is also one of the largest manufacturers of wood products in North America and operates additional business lines around product distribution, climate solutions, real estate, and energy and natural resources, among others. In 2025, the company generated $6.9 billion in net sales and employed approximately 9,500 people who serve customers worldwide. Operated as a real estate investment trust, Weyerhaeuser's common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.

For more information contact:
Analysts – Andy Taylor, 206-539-3907
Media – Nancy Thompson, 919-861-0342

SOURCE Weyerhaeuser Company

vav63/iStock via Getty Images

Weyerhaeuser (WY) is priced at an extreme discount at roughly 66% of net asset value (NAV). This is likely due to the market correctly seeing the challenging conditions in both timber and lumber. However, the market could be underestimating natural market forces that restore equilibrium. As the vertical adjusts, WY’s position as the market share and margin leader should result in substantial EBITDA growth which will make WY’s free cash flow oversized relative to the market price. As earnings improve, I think WY will trade up toward NAV for about 50% upside.

Specifically, this article will examine:

Factors making timber and lumber businesses challenging. Mechanisms of equilibrium restoration – curtailments, utilization, consolidation. Margin and market share gains Incremental sources of EBITDA Valuation by assets and earnings Fair value Challenged industry conditions

The margin difficulties of the lumber vertical are not immediately apparent looking at lumber prices.

tradingeconomics

$631 is low compared to the extreme lumber prices of 2021 and 2022, but still reasonably fine compared to pre-pandemic levels. Adjusting for inflation, lumber prices are fairly normal presently.

So why are mills struggling right now?

The low profitability of the wood products vertical in recent years has come from a mismatch of supply and demand. Supply had ramped up to meet the demand spike of 2021- 2022.

Building of single family homes was the largest driver as these are primarily wooden structures, but there was also outsized building of apartments and all kinds of CRE. Thus, the image below of the decline in housing starts only captures a portion of the demand drop off.

FRED

As of 1Q26, housing starts are low by historical standards, but not that low. Perhaps somewhere around the 40th percentile. The bigger damage, in my opinion, is in other CRE.

Office construction is nearly zero. Most large offices are big boxes of metal and glass so they are not often considered drivers of lumber, but the interiors use a variety of wood products.

Apartment construction dropped off substantially since 2024. Apartments use more wood than office, but less than single family homes.

Repair and remodel demand for wood products is stimulated by housing turnover. Owners will fix up their homes before selling in an attempt to get a better price. Sales of existing homes have been sluggish since 2023.

tradingeconomics

So while lumber pricing is decent, sales volume is weakened by low CRE construction, low existing home sales and the somewhat low homebuilding activity.

This shows up in the receipts.

FRED

Adjusted for inflation, net sales receipts of wood products are dismal.

In addition to weak quantity demanded, the supply situation has not been helpful. Production capacity ramped up to try to meet the demand of 2021-2022 and it has taken a while to come back down.

Equilibrium restoring mechanisms.

Milling capacity operates with a lag. It takes as much as a few years to open new mills or shut down existing mills. Note how capacity continued to climb in 2023 and 2024.

University of Georgia

This is clearly lagged capacity intending to capitalize on the extreme demand of 2022. The demand did not last as long as industry participants expected, so this extra capacity came online at a time when profitability was already low and supply was already too high.

There are essentially 2 levers through which overall capacity changes:

Utilization of existing mills Construction and curtailment of mills Marginal cost curves suggest there is a sweet spot for utilization. If utilization goes too high, marginal cost of production rises because crews have to work overnight shifts or overtime pay. At too low utilization, marginal cost per unit is high because the overhead of the capital expense of the mill is divided over too few units.

It was worth it for mills to pay overtime in 2022 because lumber prices were so high. Thus a certain portion of the extra supply was related to high mill utilization. Since then, mill utilization has dropped.

According to a University of Georgia field report,

“U.S. softwood lumber mill utilization rates declined from 81% in Q2 2021 to 78% in Q2 2025”

I was unable to locate utilization data for 2026, but all indications are that it has continued to drop. Utilization has dropped to a point where it becomes very inefficient to lower it further. Marginal costs have already increased due to low utilization and it gets worse if they produce less.

Utilization declines have moved to or near their limit. It was not enough, so lower profitability mills have been forced to close.

In a 2025 Weyerhaeuser article we compiled a list of mill closures/curtailments

2MC

More closures have followed. Forisk tabulates the 2026 closures below.

Forisk

Notably, many of these are in Canada. Canada’s lumber production is far too large for domestic use with these producers largely relying on exports, especially to the U.S.

Thus, the combination of duties and tariffs is materially hurting profit margins of Canadian mills resulting in substantial curtailments.

With less lumber imported into the U.S., our sawmills get to service a higher portion of demand. However, that is a longer term tailwind while low demand in the immediate term has forced many lower margin mills to shut down or reduce production.

As more and more mills close, supply and demand equilibrium will be restored. Closure will continue until such a point that sawmills can generate a normal economic profit. Therefore, one of the following must happen:

Demand will pick back up Mills will continue to close That is just how economic equilibrium works and with the substantial curtailments already in place, I believe we are in the 8th inning of equilibrium restoration.

In the bouncing around of supply and demand 3 significant changes have occurred:

Consolidation within the vertical Market share is shifting to larger producers Market share is shifting to lower cost producers To see the consolidation, one can simply look at the public markets. Today’s Rayonier (RYN) is a consolidation of 4 public companies:

Potlatch Deltic Catchmark Rayonier (the persisting name and ticker) Weyerhaeuser previously bought Plum Creek.

What were 6 good-sized companies have become 2 enormous companies.

Attrition of the weak

2023 through 2026 has been an extended period of minimal and sometimes negative margins for wood products companies. The weak have died off while the strong captured market share.

Weyerhaeuser, in my opinion, is the biggest beneficiary. WY has the highest operating margin in the space.

WY

For reference the companies they are comparing themselves to are Canfor, Interfor, Louisiana Pacific, Boise Cascade and West Fraser.

The higher margins come from a few sources:

Vertical integration with their timberlands feeding their sawmills A continuous focus on operating efficiency Scale Market access – WY is a major supplier of logs to Japan from their Pacific northwest timberland and mills, and one of few to ship out of the Gulf due to proximity to key ports. As equilibrium returns WY will have a healthy profit margin on a substantially higher market share.

Timing of full equilibrium restoration

If demand picks back up in some combination of housing starts, repair and remodel, and CRE construction, higher margins could happen very quickly.

If the restoration is more through supply curtailments it will take a bit longer. Either way, the forward trajectory is positive. While waiting for the industry headwinds to cycle into tailwinds, WY is not sitting idly. At REITweek, WY announced a plan to increase annual EBITDA by $1B even at flat lumber and wood products pricing.

1B incremental EBITDA plan

The slide below breaks down the intended components of EBITDA growth.

WY

To put this into perspective, $1B is $1.38 per share which is quite a bit of growth for a stock trading at $24.79.

Lets examine some of these buckets to get a sense for how likely this growth is to manifest.

Strategic land solutions Owning millions of acres of land comes with benefits in that certain subsets of that land become valuable, often in unanticipated ways. I am not referring to the regular HBU land sales that have been a part of the timber REIT business for decades. Rather there are some bulkier opportunities.

WY is actively exploring sale of land to data centers, or power companies that would use the land to build power infrastructure for data centers. Such sales would be at lucrative premiums to the value of the land as timberland.

Additionally, WY’s 100 million dollar CCS contract with Occidental is getting closer to completion.

I think it is likely we will see growth in this bucket by 2030, but the magnitude will vary.

Timberland and wood products One of the struggles of timberland lately has been that the demand for pulp seems to be permanently impaired due to digital replacing a large portion of paper use. Indeed the demand for pulp has declined markedly in recent years.

University of Georgia

A potential substitute demand for pulp is biocarbon. Traditional wood pellets have been around for a while but their limitation is that they primarily work in facilities designed to buy biocarbon. WY is working with Aymium on a denser wood pellet that can substitute for metallurgical coal. This would expand the use to coal plants and manufacturing facilities.

My hunch is that coal is cheaper than this proprietary wood product where coal is legal, but in areas such as Europe where carbon is heavily taxed/regulated the carbon neutral wood pellet could serve as a great replacement to keep the factories running where they would otherwise have to close. At REITweek WY’s CEO, Devin Stockfish guided to 7 million tons:

“It's part of our 2030 growth program to build out up to 7 million tons of production or 7 million tons of fiber usage, which would convert into 1.5 million tons of biocarbon to sell to steel, silicon manufacturers. There's a lot going on globally, particularly in Europe and Japan, where they're putting new taxes on carbon-intensive industries.”

Such alternative uses are great strategically as pulp would otherwise be very low value due to dwindling pulp prices down almost 50% from 10 years ago.

TimberMart-South

Arguably the largest single source of incremental EBITDA will be TimberStrand which is a high quality wood product made from lower quality sawlogs. The economics on it look strong with an anticipated 20% EBITDA yield.

Devin Stockfish discussed the TimberStrand manufacturing facility economics at REITweek:

“It's a $500 million investment. When that mill comes online, we expect that to generate over $100 million annually of EBITDA.”

Overall, I think the $1B EBITDA growth plan is ambitious, but possible. Some of the buckets are more certain than others. I think $500 million is easily achievable with the rest requiring certain things to play out the right way.

The Value Proposition

I think WY is demonstrably undervalued from both an earnings perspective and an asset value perspective.

WY has averaged $2.15B annual EBITDA over the past 7 years. It was lumpy due to the cyclicality described earlier.

S&P Global Market Intelligence

With an Enterprise value of $23B, WY is trading at about 10.69X cycle adjusted EBITDA.

That is a cheap multiple.

I think the market is not using a cycle adjusted multiple and instead assuming the challenging timber/lumber macro environment is a permanent condition. Thus, the market might be looking at 2026 EBITDA estimates of $1.14B. That would mean they are trading at 20X EBITDA.

If WY can achieve its $1B incremental EBITDA growth that brings the base EBITDA north of $2B, even if the difficult environment remains. $2B base EBITDA with upside from either lumber price increase or volume increase would make WY far too cheap at $23B enterprise value.

A 10X-12 EBITDA multiple might be normal for some business categories, but it is wildly cheap for an asset class like timberland where a substantial portion of return comes from land value appreciation.

As land appreciates, that gain does not show up in the earnings or EBITDA. It is a real gain of value, but often remains unrealized. As a result, appreciation based asset classes usually trade at far higher EBITDA multiples.

The anomaly at the moment is that timberland currently trades at far higher multiples. Private timberland values have been rising steadily with average value per acre up to $2,300 at the end of 2025.

Forisk

These are actual transactions.

You can even observe it in WY’s asset sales.

S&P Global Market Intelligence

3 dispositions total $598 million for 222,000 acres. That equates to $2,693 per acre.

This was not HBU or some special event. These were sold to private timberland investors. Further, this was among WY’s lower quality land.

Devin Stockfish at REITweek:

“It's not just about the number of acres, it's about the quality of those acres, and we've really been focused over the last several years on selling off the lower-performing assets and redeploying that capital into higher-performing assets.”

His comments check out in the numbers. These acres were lower productivity and margin.

WY has 9.740 million owned acres in the U.S.

If we multiply that by the sale price per acre of their non-core land that would be timberland value of $26.229 billion.

That already is more than WY’s EV of $23.129B.

The land alone justifies the entirety of WY’s EV, but they also have billions of dollars of other assets:

Sawmills 0.649 million controlled acres (not included in owned acres) EWP, OSB, TimberStrand, and other manufacturing facilities These things are hard to value, but the cost basis is enormous. The single TimberStrand facility cost $500 million. Sawmills can be around that range too.

Adding up all the assets, net asset value is clearly much higher than EV.

The current Wall Street consensus estimate for NAV is$37.22 implying that WY trades at 66% of NAV.

S&P Global Market Intelligence

Either the private equity buying timberland is consistently wrong to be buying it well north of $2k per acre or WY is deeply undervalued.

The valuation dislocation will eventually close. It is just a matter of direction. The private timberland investors might suffer if the doomsayers are right that the lumber industry is permanently impaired. However, if you are like me and believe that free market economics has a tendency to return to equilibrium, then WY is deeply undervalued.

It is not often that a long tenured, well managed, investment grade, large cap company trades at 66% of asset value. The market is extrapolating the downside of a cyclical business while I think a business that has always been cyclical will continue to be cyclical.

We are long WY and buying more while it trades at such an extreme discount.