Unconventional Capital Wisdom
Value, long-term horizon, worldly wisdom, growth at reasonable price

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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
WITH SEEKING ALPHA PRO, INVESTORS CAN ALSO:
  • Access Top Ideas, chosen by Seeking Alpha’s editors
  • Filter long and short ideas by market cap and sector
  • Get Coverage of over 5,000 stocks, many of which have little or no coverage elsewhere
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO." Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else." Patrick Rice, Mainstay Capital Management
100% Satisfaction Guaranteed
Money back guarantee. Seeking Alpha PRO members receive a no-questions-asked refund for membership on months paid and not used. Details