Deep Value Diver

U.S. Paper Industry: Miracle or Mirage?

While black liquor certainly saved KPPC, the future is what matters. Yes, the stock clearly looks pricey on historical results. As a non-integrated paper manufacturer, it is prone to significant fundamental volatility in financial results. However, a surface level analysis like this gives the impression that trailing results are normalized. I would argue that the stock is trading 15% below year-end tangible book value and has the ability to absolutely print money when a) pricing recovers, as it should with significant capacity rationalizations next year, and b) its normal mix returns. To me, asset value and a soon to be rock solid balance sheet seriously limit the downside, and many catalysts exist for a significant upward revaluation of the shares next year.

Clearwater Paper: An Undervalued Spin-Off

Thanks, fcharlie. I agree with everything you said.

Clearwater Paper: An Undervalued Spin-Off

They own the 880 acre site where their Lewiston, Idaho facilities are based. They don't own timberland acreage, if that's what you mean.