+ Watch CLW
on My Watchlist
I've seen a number of mentions of Clearwater Paper (CLW) in value circles over the past several months. In general, the paper business is a pretty bad one to be in, but this former spin-off operates in what seems to be a decent sub-segment of the industry...private label tissue and other products.Clearwater has been implementing price increases, closing unprofitable facilities, making smart acquisitions, and ramping up a new plant. All of these things have the potential to act as catalysts for an increase in the company's earnings, and in turn its share price.Here's a great write-up on the company by Value Slant:Clearwater Paper (CLW)- A Play on Private Labelshttp://valueslant.com/2011/12/01/clearwater-paper-clw/
Here's why I like this company:-It does something boring. What is more boring than making paper? Heck, even The Office admitted as such. When a company does something that is important (paper is a great RENEWABLE resource), but it isn't something commonly thought about, you could have a real winner on your hands.-More cash and assets than debt. The company is growing and growing quickly, but it doesn't need to take on a crazy amount of risk to do so. The company isn't going away tomorrow and it has plenty of room to grow.-Insiders are buying. Not only are insiders picking up shares through the company, they are purchasing shares outright. This shows faith in the company by those that make the machine work. Plus, they owe it to themselves to help make the share price go up.-Few analysts are following it currently. Why get in after Wall Street has already discovered this company?--P-Worm
Probably not the best day to throw this on here as it was up 3.5% today,but this stock dosen't seem to get the love it deserves,have talked about it here and on twitter in the past as having some of the strongest fundamentals around,sales $116.94 per share,earnings $7 per share ,$1.87 in cash per share,cash flow $11.41.making for a P/E that has gone from 3.7 to 12,with an ROE @ 22.7%.P/S=.7 P/B=2.28 or $35.89 a share and since going public less than 2 years ago in Dec.2008 it is up %263.6%.
buy on the pullback, idea from valueinvestor.com
Some people say that they think the paper market has bottomed out.Personally... I disagree.. especially with regard to THIS company.They have a niche which is superb. Among other products (eg, pulp, paperboard and wood products)...They make generic brand toilet paper, paper towels, facial tissues and paper napkins.Now... It seems to me.. (I could be wrong) that NO ONE is going to STOP using ANY of the above mentioned items.but... in these trying economic times... many WILL switch from the high-end qualityexpensive brands --> to the GENERIC - less expensive brands - generally marketed under the local grocery chain's brand name. Well.. Clearwater Paper makes MANY of these types of paper.Personally I think they will do EXCEPTIONALLY well - in THIS area - for at least 3 years, oras long as it takes for the economy to turn around completely.
up 218% in 3 months... overdone
Why spin off in the fourth quarter of 2008. We shall see ;<
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