This part of the economy has lost 60% of its market capitalization during the past 12 months. We cannot do without the Forestry and Wood Products Industry. That is why October 2008 is such an opportune moment in stock exchange history to buy in to the natural wealth of earth.
Stock options are limited. Not many organizations that own large tracts of forests are listed in any stock market. However, it remains difficult to make top stock picks since environmental and social accounting is not mandatory. Usual financial reports are not adequate to appraise the business value of a corporation involved in Forestry and Wood Products. You have to get your boots on and finger-nails dirty. Does the company treat its effluent. Is the re-planting program robust? Are local communities equal partners in the value-addition?
Sustainability is a new and perhaps somewhat distasteful concept for some stock market veterans. However, people who work the earth have always lived by this credo. Green business comes to the fore in the Forestry and Wood Products Industry. Take your stock picks before the calendar turns to November 2008.
I have no stocks or financial interests in the matter.
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