Canada’s Wood to fix Sandy’s Aftermath

Leaving destruction in its path, Hurricane Sandy ripped through the Northeast this week. In disaster situation like this it is sometimes hard to see a silver lining but for Montreal based Resolute Forest Products this is just what they needed as Pine Beatles continue to ravage the lumber industry in British Columbia. After shares dropped by over 4% at close of trading on the TSX Friday, the company is in need of some good news. They found it in Sandy’s estimated 50 billion dollar rampage as analysts expect a big bump in the lumber industry in the second and third quarters of 2013 as the rebuilding process starts to get underway. Once again proving that stock prices are heavily influenced by projections rather then purely revenue or profit.

This just goes to show the huge role of unpredictable factors play and how fickle the world of business can be. I especially think this Maclean’s article is relevant because it showcases the connection between analysts, stock prices and the hurricane. While it is not necessarily appropriate to think of profit margins as the death toll raises and New Yorkers start to get their lives together, such is the way of life and the world of business.

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