P.H. Glatfelter Company (NYSE:GLT)

CAPS Rating: 4 out of 5

The Company manufactures, both domestically and internationally, an array of specialty papers and engineered products.

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Member Avatar OklaBoston (69.02) Submitted: 7/13/2014 11:41:25 AM : Underperform Start Price: $24.82 GLT Score: +0.35

Toppy looking charts, higher debt level than I'm comfortable with , bad Q/Q and minimal insider ownership.

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Member Avatar coryjobe (93.16) Submitted: 9/24/2012 10:35:21 AM : Outperform Start Price: $17.37 GLT Score: +6.17

Glatfelter should record a robust profit growth this year. Management has implemented thighter cost contrils, and ongoing margin improvement ought to help support Glatfelter’s profitability in the near term. Continued stock buybacks should add lift to per-share results going forward. Their diversification efforts should do well. Innovation and product development remain key to its long-term strategy. They have earmarked $90 million for capital expenditures, with at least a third of this dedicated to expand its Composite Fibers’ production capacity, which ought to be completed by the first quarter of 2012.

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Member Avatar MechanicalBull1 (85.15) Submitted: 5/23/2011 11:32:43 AM : Outperform Start Price: $13.92 GLT Score: +27.21

valueline!

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Member Avatar 123rollinuphill (< 20) Submitted: 3/11/2011 11:54:18 PM : Outperform Start Price: $10.94 GLT Score: +73.01

necessary items

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Member Avatar 5SsmallcapDIV (78.66) Submitted: 1/18/2011 10:41:20 AM : Outperform Start Price: $11.11 GLT Score: +68.56

5 STAR, Small-cap, dividend payer

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Member Avatar Dlscwby (51.83) Submitted: 7/12/2010 3:11:37 PM : Outperform Start Price: $9.89 GLT Score: +66.10

Low price to book

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Member Avatar zkoticha (< 20) Submitted: 5/30/2010 2:40:59 PM : Outperform Start Price: $10.44 GLT Score: +53.83

Undervalued at its current p/e ratio, but that's just the beggining. It has shown attractive growth over the last few years, an according to estimates, it is suppossed to clobber the market in the future.

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Member Avatar johnnykillz (26.57) Submitted: 5/29/2010 2:12:04 PM : Outperform Start Price: $10.44 GLT Score: +53.83

Diversified papers business trading at just below book value. A disciplined balance sheet and some savvy acquisitions during the downturn have this company set up for the future. Plus, with a 3% dividend, you get paid to wait!

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Member Avatar JustHanginOut (55.25) Submitted: 5/26/2010 12:01:16 PM : Outperform Start Price: $10.69 GLT Score: +49.63

Beaten down and out of favor. Last couple of quarters were rough because the price of pulp skyrocketed. This was due to a number of factors including industry underproduction and the Chilean earthquake. Once their input costs ease and the economy picks up again GLT will be profitable again as they have been for many years.

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Member Avatar jsgantsoud (99.45) Submitted: 5/7/2010 4:28:22 PM : Outperform Start Price: $12.57 GLT Score: +25.62

dip after missing estimates. check back on schwab ratings

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Member Avatar xyznth256 (63.37) Submitted: 5/5/2010 12:39:24 AM : Outperform Start Price: $12.34 GLT Score: +30.32

Recent acquisition cost a bit of cash, but the EBTIDA to enterprise value ratio remains very low.

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Member Avatar musclemilk13 (99.50) Submitted: 4/22/2010 10:56:56 AM : Outperform Start Price: $13.80 GLT Score: +13.91

value - reuters buy, NED Davis - Buy (technical strength and low risk) S&P 3 Stars Schwab A

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Member Avatar cashkid79 (93.31) Submitted: 3/31/2010 11:18:30 AM : Outperform Start Price: $13.23 GLT Score: +17.88

old company...many niche markets...will do well as long as recovery and sentiment holds up / rises --- indirect correlation, but still fundamentally sound

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Member Avatar ayaghsizian (96.49) Submitted: 3/29/2010 2:59:06 PM : Outperform Start Price: $12.77 GLT Score: +24.68

following notzia

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Member Avatar notzia (73.40) Submitted: 3/27/2010 11:52:16 PM : Outperform Start Price: $12.88 GLT Score: +22.86

Although a Third Avenue Mutual Funds quarterly report provided the spark of interest in GLT, my decision to recommend was based on the following analysis. I am viewing this as a combination value and growth play. I’ll explain as I go. This analysis is based on a price of $14.15, the close on 3/26.

P. H. Glatfelter Company (GLT) is a manufacturer of specialty papers and fiber-based engineered products. The Company manages its business as two units: the North America-based Specialty Papers business unit and the Europe-based Composite Fibers business unit. It manufactures a range of products serving customers in numerous markets. Its products include papers for carbonless and forms products and specialized envelopes; filtration papers for the tea and coffee industry; book publishing papers; metallized papers for packaging and bottled beverage labels; overlay papers for decorative laminate, flooring and furniture applications, and papers for a variety of other specialty products, including postage stamps, playing cards, greeting cards, digital imaging papers and FDA grades. On February 12, 2010, Glatfelter completed the acquisition of Concert Industries Corp. (Concert).

Before I look at the valuations, I look at three indicators of financial safety. For this stock, two results were cautiously safe and one was quite good. The Altman Z is 4.9; below 1.8 is risky, above 3 is the safe range. The Piotroski F is 6; 2 or below indicates caution, while 8 or 9 indicates that the stock is expected to rise within the next year. The Sloan accrual is -3.4; 5 or higher is high risk, while -5 or lower is excellent.

The calculated estimates for the intrinsic value of a share of RKT ranged from $29 to $81. Three of the four estimates were based on Discounted Cash Flow (DCF) analysis. This method discounts estimates of future cash flows for a company to estimate the present net value. Although the typical discount used in such analyses is 10%, the following analyses were conducted with a 15% discount to be 50% more conservative in estimating the value of a company or its stock.

The most conservative estimate ($29) was based on a DCF using cash flow from operations minus depreciation and amortization as the measure of cash flow in the analysis. The most aggressive estimate ($277) was based on a calculation DCF using a more traditional estimate of free cash flow (cash flow from operations plus capital expenditures) with a resulting estimate of $81. There were two other estimates calculated. One was based on a DCF using a risk-adjusted cash flow (EVA – economic value added) in the DCF; this method identifies the extent to which capital used to generate future growth leads to an added return on that investment with a resulting estimate of $66. The other was based on Benjamin Graham’s formula and resulted in an estimate of $62. These initial estimates of valuation suggested a margin of safety between 52 and 82%; that the market value of the stock and company is substantially less than the true value.

Book value is a rough estimate of the net asset value of a company. For GLT, the TTM book value is $11.35. The price to book value is 1.25. This easily meets Graham’s ideal of 1.6 or less, but net asset value is a very conservative measure of a company’s value because it is based on the tangible assets of a company valued at the purchase price. A more appropriate measure is the replication value of a company. The replication value is the estimated cost that a startup company would expend to duplicate GLT’s standing within the paper and paper products industry. Based on the adjustments to the weight given various balance-sheet items suggested by Bruce Greenwald, the estimated replication value of RKT is $18.39. The resulting price to replication ratio of .77 is substantially less than the suggested threshold of 2.50.

In the last four years, revenues have been growing in parallel with the cost of goods. Nonetheless, operating income has increased nearly doubled since 2000. Nearly all of this growth has been fueled by acquisitions. Since 2006, GLT has made four acquisitions (the most recent being the purchase of Concert completed this past February. These acquisitions have strengthened both of the company’s two major business units, and nearly all of the growth in operating income has come about starting in 2006.

In sum, GLT looks to be a worthwhile investment from both the value and growth perspectives. It is clearly undervalued from a discounted cash flow perspective, and the fundamentals look to be sound. GLT has also made significant acquisitions that have almost doubled the company in relatively short period of time, while keeping debt at a manageable level. Based entirely on the results from discounted cash flow analysis, while maintaining a 50% margin of safety, GLT should be purchased at $40.34 or less. However, Buffett is reported to look for investments that have a 15% return from the onset. With a trailing-twelve months earnings per share of $2.70 and the dividend at $0.36 per share, a purchase price of $20.40 would ensure a starting return of at least 15%.

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Member Avatar ALPHADividend (92.23) Submitted: 4/16/2009 1:11:28 AM : Outperform Start Price: $5.97 GLT Score: +180.81

This company appears to offer a solid opportunity as of today (April 2009).
The company is trading below reported book value and is paying high dividends. Additionally the company operates outside of the FIRE (financial insurance real estate) sector of the economy, so chances are, what you see is what you get. I've personally screened this company to ensure it did not expand excessively during the hot years (2004-2008).
This company was found today via google screener with the following criteria:
atleast 100m market cap or more
has fallen more than 45% past 1yr
dividend payers @3% or more
atleast 25% institutionally held
price to book less than 1
have total debt/assets less than 100%
have total debt/equity less than 100%
personally screened to make sure the companies were not FIRE industries (financial/insurance/real estate), oil commodity related, industrial metal commodities related, sea shipping related
personally verified limitation on expansion during boom years (not excessive BS growth from '04-'08)

the resulting dividend companies to buy are:
AM, BRC, CBS, CBT, CDI, CSS, GLT, HRC, KELYA, LYTS, MEI, MWV, SXI, TKR, UVV

conversely I will be looking to short opportunities with opposite criteria.

This will be the primary focus of this profile, to seek & obtain alpha from long/short dividend opportunities across various industries.
- ALPHADividend

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Member Avatar mbtoll (< 20) Submitted: 11/7/2008 10:11:08 AM : Outperform Start Price: $7.17 GLT Score: +109.89

Not a thrilling sector but this stock fell more than the S&P500. It has a moderate dividend and a low P/E, especially when compared to the industry. It has a history of earnings growth that will continue at a moderate pace.

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Member Avatar StarWitchDoctor (99.49) Submitted: 10/28/2008 10:10:49 PM : Outperform Start Price: $7.75 GLT Score: +100.84

only got 8.70 on the day of the spy +11%
and caps community likes it.

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Member Avatar hugeinhongkong (86.31) Submitted: 5/8/2008 9:00:01 AM : Outperform Start Price: $12.35 GLT Score: +53.01

good fundamentals- lots of free cash which is important for a small cap, positive EPS surprises

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Member Avatar HatchingPlans (40.52) Submitted: 7/5/2007 8:49:35 PM : Underperform Start Price: $11.63 GLT Score: -75.41

Fundamentally sour. Flat margins, high debt and negative cash flow. Ugly growth until at least next year. This pig won't fly.

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