Seeking Alpha
Editor's notes: The market is missing the forest for the trees on RFP's shares. A low valuation, growing earnings, and a stabilizing balance sheet could mean a double over coming years.

Executive Summary

• Bankruptcy and years of losses has totaled over $2 billion in deferred tax assets and management's focus on profitability will unlock deferred tax asset over the next 20 years

• Huge pension deficit is disappearing as interest rate/discount rate rises

• Liquidation value with another 100 bps increase in pension discount rate would mean liquidation valued downside of only 6%

• Management agrees the company is undervalued and bought back $67 million worth of shares in 2012 and has another $33 million available to buyback.

• Industry is in cyclical downturn and paper is in secular decline, but rising housing starts, better pricing inputs and cost saves will add significantly to RFP's EBITDA

• Trading significantly below...

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