Buckeye Technologies, Inc. (NYSE:BKI)
The Company manufactures and distributes value-added cellulose-based products used in disposable diapers, personal hygiene products, engine, air and oil filters, concrete reinforcing fibers, food casings, cigarette filters and rayon filaments etc.
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Overly punished for a bad quarter
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Improving fundamentals. ROA and Gross Margin improving yoy.
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economic normalization, staple stock
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Has good financial. Debt load as decreased in the current economy. They seem to have a handle within their area of expertise. Certainly worth watching.
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up 25% in this stock in my real portfolio but im just adding this to caps now. it needs to break through resistance at the near the 12.45 level and then this baby should take off. i think it could be priced fairly between 16-18 within the next 1-3 years, currently undervalued despite move yesterday, but this stock has been extremely volatile so you can time your entry point after a move down. (maybe in the 5% neighborhood if you want to risk waiting for a pullback)
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Demand for materials will increase as manufacturing rebounds.
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BKI manufactures and distributes cellulose specialty products. It is a well managed and strong Ohio company that is recovering nicely from a rough period, and it is undervalued.
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up 85% in 3 months, overdone
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BKI, a company with diverse products, has been improving its financials despite current challenges in the economy. Revenue growth, EPS, net income and cash flow have all improved over the last quarter. The company still needs to improve on ROE, ROA & ROI and it would benefit from debt reduction. However, it appears to be headed in the right direction. Given that BKIs price to book is currently .88 and given that is currently trading at $9.55, well off its 52 week high of $19.20, and given the recent improvement in financials, this company is poised to outperform.
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A lot of insider buying at $9.0
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Poor management, plain and simple. There is also no real reason why this company would face any significant growth that would cause it to outperform.
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