Resolute Forest Products, Inc. (NYSE:RFP)

TMFBlacknGold (99.39) Submitted: 6/28/2012 11:47:36 PM : Start Price: $10.90 RFP Score: +21.20

This is one of my gem picks and future investments once I can infuse some cash into my portfolio (a little difficult when moving). The company is nearing completion of a major overhaul - following suit of many other paper companies - and has been whacked in the process. However, with a fair book value of $38.42 per share (and growing) there is no reason to believe patient shareholders won't reap significant gains. That represents a 190% gain to $12 per share.

RFP is the perfect stock to break the back of those who religiously hold onto the metric of P/E. At fair book value this company would have a current P/E of nearly 100 (!!!) but it wouldn't be overvalued compared to a liquidation or acquisition scenario. If the company wasn't restructuring an earned a modest $1.74 per share (TTM) it would have a P/E of just 20 at $38.42 per share. It would be wise to look into this company more closely before the big players catch on.

As a bioprocess engineer (my curriculum was closely related to paper engineering) I believe this is a very sweet opportunity for investors. Once I purchase shares I will certainly add a comment and disclose my entry point.