RE: Q1 results...... Had sales been equal the results would have impoved over last year Q1:
(e) New Brunswick pricing was C$57.77/m3 for Q1 2013 vs. C$56.62/m3 in Q1 2012; and (f) Maine pricing for the current quarter was slightly higher at C$57.95/m3 in Q1 2013 vs. C$57.79 in Q1 2012.
My impression is that ADN does not work in accordance to demand rather cuts a certain amount of materials based on environmental conditions. Inefficient methods when the impact of "larger softwood sawlog customers" does not influence production points.
From: https://www.nasdaq.com/article/analyst-actions-acadian-timber-corp-keeps-underperform-at-credit-suisse-cm245623
Valuation: Our UNDERPERFORM rating and target price of C$12.00 is obtained from applying a 6.9% dividend yield on current dividend of C$0.825 per share. We reiterate our UNDERPERFORM rating
IMO unless ADN does a better job of moving inventory the above target of $12 is somewhat reasonable although dissapointing.
On the up side, I believe that lumber materials pricing will continue to climb as the US housing market and storm rebuild come more fully online.