RE:Anyone know whatThe drop makes a lot of sense. CAS was overbought at $18; its current earnings justify the current price ($14 - $15). The containerboard price increases announced earlier in the year generated some buying enthusiasm that pushed the stock to over $18; however, the first and second quartedr results fell way short of consensus and disappointment set in.
I would have thought that the sale of Boralex would stimulate buying interest because it is an opportunity to pay down part of the debt. However, management seems to have little appetite to lower the debt level; investors (especially institutional investors) must perceive this and are staying away in droves.
Barring unexpected developments, the next big move will occur only when earnings reach an acceptable level (say $1.5/share) or when the debt drops substantially.
The revaluations announced with the second quarter results have brought the book value of CAS to over $15/share, which is quite healthy; this may encourage potential investors, but, so far, there has been little evidence that this is happening.
Good luck to all