"In a world where complex derivatives contracts and other paper assets can evaporate at any time, it's refreshing to own something real and tangible -- and you can't get much more solid than a tree," says value investor Nathan Slaughter.

In his Half-Priced Stocks, he explains, "Potlatch (PCH) owns plenty of them, with a portfolio of 1.6 million acres spread throughout Arkansas, Idaho, Minnesota and Wisconsin. That forestland produces a steady harvest year in and year out. Timber production has been rising at a healthy +9% annual pace, reaching 4.4 million tons before last year's slowdown

"Seattle-based Plum Creek Timber (NYSE: PCL), the nation's largest private landowner with more than eight million acres, has caught our eye," says Bill Martin.

In his BullMarket.com advisory, he explains, "Earnings have been stunted in recent quarters by the housing slump, but the company sports a strong balance sheet and an asset base that thanks to nature only gets larger and more valuable as time goes by."

"Plum Creek, which operates as a real estate investment trust, reported surprisingly solid Q3 profit. It posted net income of $69 million, or 40 cents per share, for the quarter ended September 30th, compared with a profit of $59 million, or 34 cents per share, for the same period a year ago.

"In the 2007 quarter, fire losses in Montana forced the company to report a $4 million non-cash expense, or two cents per share, related to fire losses experienced in Montana.

"The company's EPS results topped the expectations of Wall Street analysts by a penny a share. Revenue grew to $414 million, up 2% from $407 million last year. The sales results were a bit short of the consensus of $419.8 million.