RE:RE:RE:RE:Zzzzzzz. Huh? Wha? Did I miss anything? Buying land directly is never a bad move. I only have a few hundred acres and to do a "project" and monetize I'd need about 3000 acres at present. But that line in the sand is falling. This would be an approach much like what I assume ADN did -- via a 3rd party carbon firm that does the end to end design, execution, sale, validation etc in exchange for a cut. This would be a Bluesoruce or Finite Carbon or many others.
Seeing how strong the stock has been in a weak market means I've added heavily. I know longer run it'll be easier to sell carbon individually but I find I can't find woodlot for under $500/acre these days. But I can buy ADN for $300/acre.
Moreover I didn't borrow to buy land. I didn't try hard but I gather it's tough. So an ADN may be leverage-friendly via a LOC too.
Long story short I know of many timber firms making more on carbon these days and I would not expect ADN to be an exception in the future. Why they don't engage with you? Well I've worked at one of these firms before that was BAM owned. It's not fun, man. They are ruthless and lean, and they don't likely have time to engage in blue sky thinking. But those assets help drive profitability too so it's double edged.
I will propose some actions that I'd like to seem them do, like a comprehensive investor deck and capital allocation framework. That's doable -- you can always farm that out to a consultant right.
quote=Maxmoe]
Yes, management mad an obscure reference to carbon capture on one of their calls. I followed up with them and received a slightly less vague response but there was clearly no actionable plans in place so, again, for effect , I made the exaggerated suggestion we contact the oil barons of Calgary and cut a huge carbon credit deal. It's clear to me ADN doesn't know how to structure such a transaction, and/or doesn't care. If Brookfield still owned it, they've got the strength on the bench to create a deal like this but they'd somehow snag all the value in one of the BAM entities vs it going to ADN shareholders. And btw, since I posted my nutbar ideas, I've added to my position as well. Not adn shares, acreage in the maritimes. Even after doubling of late, it's still a bargain. cracks me up to see ads on national tv from the province of ns trying to attract people to move there
[/quote]