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Canfor Pulp Products Inc T.CFX

Alternate Symbol(s):  CFPUF

Canfor Pulp Products Inc. is a Canada-based global supplier of pulp and paper products with operations in the central interior of British Columbia (BC). The Company operates through two segments: pulp and paper. The pulp segment includes purchase of residual fiber, and production and sale of pulp products, including Northern Bleached Softwood Kraft (NBSK) pulp and Bleached Chemi-Thermo Mechanical Pulp (BCTMP), as well as energy revenues. The paper segment includes production and sale of paper products, including bleached, unbleached, and colored paper. Its products under the solid wood category include dimension lumber, specialty lumber, and engineered wood products. It produces green energy in its lumber and pulp facilities across North America. The Company owns and operates three mills in Prince George, BC with a total capacity of about 780,000 tons of Premium Reinforcing Northern Bleached Softwood Kraft (NBSK) Pulp and 140,000 tons of kraft paper.


TSX:CFX - Post by User

Bullboard Posts
Post by Nbskon Sep 18, 2020 7:18am
248 Views
Post# 31579751

Looking forward

Looking forward

Q3 will not be great with July curtailments, shutdown for capital upgrade and lower pulp prices this summer, but it's unfolding nicely for Q4 with price hikes for NBSK across the map (china, america, europe) in September and again for October (~5%)

 

The current stock price is clueless about the business value. Maybe some traders think about newspapers when they hear pulp? And NBSK pulp is not the same use as eucalyptus or hardwood, it's hard to substitute and do without it.

 

This business earned an average of 1.25/share over the last 5 years, some years were good, some bad. Real money Earnings. After tax, depr, amort, interests... so it's trading like a P/E of 4x for something that's very useful and recurrent (even these days).

 

I've been adding more shares at this bargain price and expect to be greatly rewarded as investors return to fundamentals. My ownership is now over 1/1000 of CFX. My expectation is a 3x or 4x within couple of years. It's the only stock I am loading up, while sitting on BLX and INE.

Bullboard Posts