Vancouver, British Columbia, October 18, 2012 - Investment firm Canaccord Genuity adds EACOM Timber Corporation (TSXV:ETR)to their Canadian Focus List. Analyst Neal Gilmer maintains his speculative buy rating, giving the company a 12 month target price of $0.25, a 71% premium to yesterday's closing price of $0.145.
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EACOM's business consists of the manufacturing, marketing and distribution of lumber, wood chips and wood-based value added products, and the management of forest resources. The company owns eight sawmills, all located in Eastern Canada. It also owns a lumber remanufacturing facility in Val-d'Or, Quebec, and a 50% interest in an "I" joist plant in Sault Ste-Marie, Ontario.
Gilmer believes, "the increase in housing starts should drive demand for lumber that should support higher lumber prices."
Following a challenging 2011 and a strained balance sheet, the shares of EACOM fell on concerns of the financial flexibility. The company secured $40 million in financing in early April that improved its balance sheet. With the financial liquidity concerns addressed, and its first quarter of positive EBITDA in the second quarter of 2012, Gilmer believes EACOM is an attractive way to play a recovery in lumber.
Gilmer stated that the outstanding $0.20 warrants should present a near-term ceiling, but "we view a potential return of 25-35% taking the stock to $0.18 - $0.19 over the next couple of quarters."
Eacom currently trades at $0.145, and with 479 million shares outstanding, the company is capitalized at $69 million.
For more information please visit the company's website www.eacom.ca (http://www.eacom.ca), or contact Marc Girard at 514-848-5133.
For more information about Canaccord Genuity or to obtain a copy of their research report, contact your nearest Canaccord Genuity office. Their branches are listed on their website at www.canaccord.com (http://www.canaccord.com/).
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