Rayonier (NYSE:RYN) is about to release earnings results. Ponder this Bear Case Scenario when considering management comments. Strong margins in the fiber business will attract the attention of the competition. Rayonier’s real estate segment is highly dependent on Florida which is cyclical at best. Just like riding a bucking bronco. Rayonier’s timberland acreage is predominantly in the south. Roughly half the harvest is pulp wood logs which is held hostage to cyclical paper products.
George Gutowski writes from a caveat emptor perspective.