Acadian Timber Is All About Growth

This week the latest portfolio I'm building (my Safari To Sweet Success portfolio) seeks a high-yield and growing stock in the basic msterials sector. 

That sector includes thirteen industries all tied to mined or manufactured commodities. Basic Materials Industries include: agricultural inputs, aluminum; building materials, chemicals, coal, copper, gold, industrial metals, lumber & wood, paper, silver, specialty chemicals, and steel. 

Today I'm reviewing a Canada-based supplier of primary forest products in Eastern Canada and the Northeastern U.S. 

The company's name is Acadian Timber Corp. It's trading ticker symbol is ACAZF . I also reported on Acadian in January.

The company organizes its operations in two segments, namely: New Brunswick Timberlands and Maine Timberlands.

Its products include softwood and hardwood sawlogs, pulpwood, and biomass by-products. 

Acadian's business strategy is to maximize cash flows from its existing timberland assets while growing its business by acquiring assets on a value basis and utilizing its operations-oriented approach to drive improved performance.

Acadian Timber Corp. is headquartered in Vancouver, Canada.

I use three key data points gauge the value of any dividend equity or fund like Acadian Timber Corp. (ACAZF): 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will finally unlock an equity or fund in which to invest.

However, it's those first three primary traits that best tell whether a company has made, is making, and will make money. 

ACAZF Price

Acadian's price was $15.09 per share at Friday's market close.  A year ago its price was $13.17 for a gain of $1.92 per share in the past year.  

Assuming ACAZF's price will trade between the range of $13.00 to $18.00 next year, its price could grow another $1.92 from $15.09 to $17.01 by April, 2019. 

ACAZF Dividends

Acadian's most recent variable quarterly dividend was $0.22 paid January 15th.  Total annual dividend for 2018 is estimated at $0.88 per share for a yield of 5.8% at Fridays $15.09 stock price.

Gains For ACAZF?

The $1.92 estimated year over year price gain plus an anticipated dividend of  $0.88 makes a projected gross annual gain of $2.80, which will be reduced by costs to trade these shares.  

$1,000.00 invested today at the $15.09 price buys 66 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts $0.15 per share

Taking that $0.15 brokerage cost out of the estimated $2.80 gross gain leaves a net gain of $2.65 X 66 shares = $174.90 or a 17.5% potential net gain on a $995.94 investment.

Therefore, Acadian Timber Corp. (whose ticker symbol is ACAZF), now shows a possible 17.5% net gain including a 5.8% dividend yield. 

No analysts cover this stock. However Y Charts rates the stock "attractive", giving Acadian an "excellent" value score at 10 of ten points possible, a "strong" fundamental score with 9 out of 10 points, and sees the stock as 11.54% undervalued.

Those forward looking numbers were conjecture based on past year performance. Actual results remain to be seen.  They could turn out to be far higher or lower. More study is required for you to determine if Acadian Timber Corp. (ACAZF) is worth your time and money.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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