Weyerhaeuser Company (NYSE: ) shares continued their decline despite positive comments from CNBC's Jim Cramer on his Mad Money Lightning Round. The hedge fund manager turned television superstar believes the stock and housing market are hear a bottom and lumber will be among the first things to rebound. Cramer also noted that the stock has a good, safe yield and believes that now is the right time to pick up some shares.
Weyerhaeuser shares have fallen sharply since the housing bubble burst. The lumber-producer relied heavily upon the housing market to sustain its business, but the sharp rise in foreclosures has virtually eliminated any core demand. Even worse, the foreclosures currently on the market will take away demand from new builds as the housing market recovers. Many experts like Jim Cramer believe that the housing market will recover over the next nine months.
Weyerhaeuser Company is an integrated forest products company. The Company’s business segments are Timberlands, which includes logs, chips and timber; Wood Products, which includes softwood lumber, engineered lumber, structural panels, hardwood lumber, and building materials distribution; Cellulose Fibers, which comprises pulp and liquid packaging board; Real Estate, which comprises real estate development, construction and sales, and Corporate and Other.
Shares of Weyerhaeuser shares dropped $1.51, or 2.85%, to $51.49 per share.