Topic: How To Invest

Pat: What is your view on Acadian Timber? Thanks.

Article Excerpt

Acadian Timber, $18.23, symbol ADN on Toronto (Shares outstanding: 16.7 million; Market cap: $302.0 million; www.acadiantimber.com), supplies forest products in Eastern Canada and the northeastern U.S. Acadian owns and manages 1.1 million acres of timberland in New Brunswick and Maine. It also manages 1.3 million acres of Crown-licensed forests. That brings its total acres under management to 2.4 million, making the company the second-largest timberland operator in New Brunswick and Maine. It also owns and operates a forest nursery in Second Falls, New Brunswick. Acadian’s products include softwood and hardwood sawlogs, pulpwood and biomass (wood waste for burning in power plants). It sells its goods to over 90 regional customers. Brookfield Asset Management (symbol BAM.A on Toronto) owns 44.9% of Acadian. In the three months ended December 31, 2014, Acadian’s revenue rose 3.4%, to $22.5 million from $21.8 million a year earlier. Cash flow per share gained 20.6%, to $0.41 from $0.34. Selling prices for logs rose, while the company’s operating costs held steady. Acadian…