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Clearwater Paper: An Undervalued Spin-Off

Awesome article. Very convincing. You've really done your work on this one, and it shows.

I also like IP, UFS, and WY. All are receiving alternative tax credits. The paper industry has been consolidating for a decade, and had finally brought capacity to a good level, with solid pricing power, just prior to the economic collapse last fall. Profits can really move up once we get a sustained recovery. The tax credits, in my opinion, are just icing on the cake. Most paper stocks aren't reflecting the value of these credits at all, probably because it is widely assumed they will be eliminated later this year. However, the value of these credits relative to market values of the companies receiving them is staggering, and the benefits of them will be felt far into the future as they are allowing for some serious debt repayments today.

Again, very nice article.