Acadian Timber Corp (ADN.TO)

(Top Pick Mar 1/11, Up 21.00%) Likes lumber as an asset. Inflation protection play. US housing market is till on its knees. Lumber prices picked up a little going into this year. They can maintain the dividend at these lumber levels.

Expect all timber companies will be acquired because of the Japanese earthquake, which will require a lot of timber. Asia is the biggest importer of Canadian timber. Also looking for the US housing starts to recover, but doesn’t expect this for another 2 to 3 years. These stocks have done nothing over the past 2 years so at a good price. Just raised its dividend back to its pre-recession level. 7.6% yield.

1 million acres of timber. Lumber always grows. Lives and dies with housing starts. Just raised dividend 4 fold. Terrific yield while you wait for US housing market to recovers. Strong demand from China. In 2007 it was $350/acre and at that multiple this is worth $16-$17/share.

Timberlands business has been an excellent one over the long-term. Really a land business that happens to have trees on it. Nice, steady business.