A WEE DRAM
CHRIS GILMOUR: York fans switch to amber on Norwegian firm
‘A valid suggestion is that York should wait until Green Resources goes into liquidation’
York Timber is a fascinating company. Because the share price can be extremely volatile, it can come across as a punter’s delight. But it is also a company that takes its investors very seriously and gives highly detailed presentations and is strong on corporate communications. Its followers tend not to be "the usual investment suspects" but rather York enthusiasts who find deep value in the stock and who are rarely seen at any other results presentation. It’s inherent that York’s earnings are erratic, given that, first, it relies on a biological asset that is subject to climate and other vagaries such as fire and, second, it sells many of its products into a notoriously cyclical industry — the construction sector. In recent times, York has found success by applying science to the timber industry, so that it is achieving wider logs at an earlier age, thus improving yield. On a current price:earnings ratio of only 2.4 times and a discount to tangible net asset value of 63%, it does l...
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