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Has Cellulose Finally Hit Bottom?

|Includes: RYAM, Tembec Inc. (TMBCF)

Over the past year I've had my eyes on Tembec (TSE: TMB) and Rayonier Advanced Materials (NYSE: RYAM) as potential value plays.



With the cellulose market getting hit hard from over supply and reduced demand, producers have suffered.

I haven't had the opportunity to do much research on the companies but with the announcement of Fairfax Financial buying 19.9% of Tembec in a private transaction at a price of $2.25, it might be worth another look!

Disclosure: The author has no positions in any stocks mentioned, but may initiate a long position in TMBCF, RYAM over the next 72 hours.