MeadWestvaco: Ride Along Starboard For Profit
- Hedge Fund activism was recently confirmed in the shares with Starboard Value LP taking a 5.6% stake in the company.
- Capital spending projects are rolling off improving margins and free cash flow.
- Margins are already improving with current valuation expecting no further improvement.
- Second quarter margins should benefit from weather effect turnaround and improved pricing power offsetting input inflation.