RE:RE:good q and boosts dividend
Yeah. I think management has got it. They are identifying and acquiring packaging products and are quickly pivoting themselves out of envelopes. 271% increase in other packaging revenue is significant.
Their Debt to EBITDA is only 1.5. That means they are good to acquire others in that space. They can drive it up to 3.5 without any concern.
**** They still need to get on the investor circuit in Toronto and New York. That is better use of their money than share buybacks. Until their story becomes better known, they are range bound.
I like to compare this stock with Transcontinental. They are trying to do a similar shift. They are well known and so have an investor following that has driven their stock price up. Why? The hope they can pivot. However their Revenues have SHRUNK over the past year while SXP Revenues have Grown.
At one point the market will realize SXP is mispriced. In the meantime you just wait around and collect the healthy and secure dividend.