Domtar Corporation (NYSE:UFS) is a manufacturer, marketer, and distributor for a wide selection of fiber based products, including communication papers, packaging, and other specialty papers. Currently, there is a strong demand for pulp and paper products across the globe. And with only several firms serving the end consumers of the industry, the level of competition remains minimal. Domtar's sizable position in the industry's oligopoly market structure will enable it to maximize profits that are sustainable in the long-run. Additionally, this will augment Domtar's overall firm value as well as the intrinsic value of its common equity held by shareholders. This article will outline Domtar's business model, provide seven reasons why Domtar's a strong buy at its current valuation,...
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