Review of Acadian Timber Corp.

JUL 16, 2024 - ADN sales volumes have begun to rebound, and management has been executing on improving contractor availability, an issue that has been an overhang on the name for some time now. Its recent financial results were fairly strong, and with the sale of its carbon credits, we feel this helps to diversify its operations, as well as support its currently relatively cheap valuation multiples. Given a generally positive outlook in the lumber industry, we are maintaining our rating at ‘B’.

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Q: Good morning all; I've a two part question for you, First, the listed investments are in a RRIF. The current plan is to extract only dividend income, and have some modest stock growth.

I have funds for one more position and I'd like 3 of your suggestions that would add decent dividend income with modest growth of stock value.

Second question is about XLB. It was originally purchased as a post-inflation investment looking for some appreciation as rates declined. While Canada may get a bit more downward adjustment I believe Trump policy will be inflationary. What would be a sound replacement, meeting the dividend and growth goals for the account?

Thanks as always.

Dave

Read Answer Asked by Dave on January 29, 2025

Acadian Timber Corp. (ADN)

Q: Given Acadian Timber's forest lands are situated on both sides of the New Brunswick/Maine border, do you see this putting the company in an advantageous position in the event of a tariff dispute between Canada and the US? Does the company have processing operations on both sides of the border?

Read Answer Asked by William on January 15, 2025

Q: If Trump wins election and he follows through with his promised 20% tariff on imported goods, which Canadian industries would be most adversely affected?

Read Answer Asked by Mark on October 11, 2024