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Update On Resolute Forest Products: Wood In Hand Still Worth Two More In The Forest

In our previous Top Ideas article on Resolute Forest Products (NYSE:RFP) we outlined how the market was overlooking a company with a dominant position in the boring print, pulp and wood product industry. It was easy to overlook the company and agree with the market because Resolute Forest Products' pension obligation was large and the print segment seemed to be on a perpetual decline. Such negativity led the market to put an unusually low valuation on Resolute Forest, so much so that the company was trading slightly higher than what we estimated to be the proceeds from liquidation if there was a 1% increase in the pension's discount rate. We noted that the company had a large deferred...

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