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WFL - Willmott Forests

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mmmmining

mmmmining

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IMHO, one the best way to reduce CO2 contains in the air is to through plantations.

Coal fired power station emission CO2, trees absorb CO2, and convert it into wood. As long as you don't burn it, it could store Carbon for hundred of years.

Recently the MIS sector took a big hit because of changing government policies, and investment in MIS become tax haven, and wish negative cashflow. Along with TIM, GTP, and others, WFL took a hit as well, but to the less extend.

I believe WFL worths a look because:

Plantation is only in softwood forestry, which has stable policy until 2020;
Good management team;
Low gearing (40%)
Positive cashflow, and
Entry to renewable energy market
6.4% fully franked dividend yield

Currently price is near 12 month low. But I believe when the carbon credit or tax is introduced, WFL will be benefit a lot. Entry the renewable energy market prove the management has vision for the future. This stock could be re-rated on both fronts soon.
 
I have watched this one for a period of about three years but never bought in...their share price has been a bit disappointing in that time,but their day may be yet to come.It was promising to see their latest purchase.
One thing that I do no understand is why the Managed Investment Scheme taxation ruling should have had much effect on WFL..I thought that these schemes were intended for forestry investments...where there is a roughly ten year lag before the first dividend is paid.That being the time till first thinnings of radiata pine...or thereabouts.
Was it only perceptions as to how the tax ruling may adversely disadvantage WFL ?
 
I know their plantation area quite well. They are a more professional outfit than State Forests of NSW in that area, but most of their plantations will not realise huge profits until the 30 year mark when whole lots are felled. Thinings for chipwood and bark etc. Though they have their garden products as well.
If they are pruning the plantations for clearwood it will add to the value of the plantations. I am not sure if they do this.

The number 1 risk is FIRE.
 
I have been looking at WFL lately and they look very undervalued even on conservative earnings assumptions.
Richard987
 
News that WFL is on target to deliver another profit as per its last report that delivered 130% increase over the previous period.

Im interested in the dividend rtn on this stock. It delivered 5cents in the last year. On todays sp close of 32cents, if dividend rtn remains constant, that can deliver a 15.6% dividend rtn. Is this right? With profits up the dividend could be higher?.
 
copashark said:
News that WFL is on target to deliver another profit as per its last report that delivered 130% increase over the previous period.

Im interested in the dividend rtn on this stock. It delivered 5cents in the last year. On todays sp close of 32cents, if dividend rtn remains constant, that can deliver a 15.6% dividend rtn. Is this right? With profits up the dividend could be higher?.
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And the fact that every major forestry MIS company (except Gunns) has fallen over doesn't worry you at all :dunno: or the fact that Gunns has had it share price smashed by some 85% over the last 10 months or so..are these issues totally irrelevant?
 
Hi again,

The low share price is "completely relevant" to my query. ie the dividend return as a ratio to the low share price. Although the sp has increased 10%+ yesterday and a further 4.69% today.

ta.
 
Never was interested in this or the others.

It amazes me these companys pay dividends based on investors investing to save tax in it to make trees. Then once people stop signing up they go cashflow negative and quickly broke.

The whole idea of these schemes smell a bit of the guys running it taking the money through their services and taking it as soon as they can.

None of these companies ever seemed to be the truly long term investment company they pretend to be.

Is this the last one left?
 
TFC is still there and seems to be making a reasonable job of things.

But it has the advantages of being a sandalwood grower with a ready market for the product and actually selling the stuff.

I don't and never have owned any of these MIS companies although must admit I've looked hard at TFC a few times.
 
TFC is very attractively priced. I will have to look at it closer.

Thanks oldblue.
 
Investment based on tax saving is probably one of the worse investment anyone can make

1. Lose money and claim tax credit
2. make money and pay tax

I take option 2 thanks :D
 
oldblue said:
TFC is still there and seems to be making a reasonable job of things.

But it has the advantages of being a sandalwood grower with a ready market for the product and actually selling the stuff.

I don't and never have owned any of these MIS companies although must admit I've looked hard at TFC a few times.
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Willmott sold lots of timber, has done for prob about a decade, had there own forestry crews (mostly ex state forests) vehicles and equipment and at one time owned a couple of Mills....Willmott was a reasonable professional forest manager in a private sector that simply has none.

Looks like we cant say the same about senior management, some of the decisions they took, like paying the last dividend was prob madness, another blow for rural Australia and the good people of Bombala and Delegate....cheap real estate anyone?

Cheer up Chook...you'll get over it.
 
When will some people realise that litigation funders are not in it to seek justice for people but to make money?

http://www.smh.com.au/business/cons...restry-scheme-settlement-20160405-gnyknb.html

Court throws out Willmott forestry scheme class-action settlement

The Federal Court has refused to approve a piecemeal class-action settlement for victims in the Willmott Forests managed investment schemes after finding it was not fair and that returns to investors did not match the millions they had paid to fund the law firm running the case.

More than 3500 investors were caught up in the collapse of Willmott Forests which went under in 2010 owing its banks, most notably the Commonwealth Bank, about $200 million. Investors had ploughed $400 million into Willmott Forests schemes.

The settlement offer was put forward by Macpherson and Kelley Lawyers (also known as M+K), which were representing some of the investors in the four separate class actions. The four class actions were heard together by Federal Court judge Bernard Murphy.

The court's refusal of the Willmott settlement comes after the court approved a highly controversial deal put forward by M+K in 2014 in relation to the Great Southern schemes, which saw the law firm take $20 million of the $23 million compensation in legal fees.

M+K was recently criticised over its handling of the Great Southern class action in a recent Senate Inquiry report on the failure of managed investments schemes that focused on the 2009 collapses of Timbercorp and Great Southern.

On Monday, Justice Murphy found the Willmott settlement gave preference to M+K clients over those who had chosen not to be represented by the law firm in the matter.

"The Court will not approve a settlement unless it is satisfied that the settlement is fair and reasonable having regard to the interests of the class members who will be bound to it, including by not preferring one group of class members over another," Justice Murphy said.

Justice Murphy also found the settlement offer put forward by M+K gave preference to investors who had participated in M+K and even then the payout dwarfed the legal fees paid by investors to M+K Lawyers.

................More
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