RE:RE:RE:RE:RE:RE:RE:RE:Buying High 5's and Low 6's At this price, it's a gift! Too small & too dull & too obfuscated to be on anyone's radar. (Maybe its the goal). They elected to do an asset impairment in Q4 which hides that we were tracking around 1$ of net earnings in 2021 for a 5$ stock!! It's going to remain on the negative P/E stock filters for year-end and thus invisible to most investors. Patience is required here, no instant gratification.
The pulp prices are on a strong uptrend, higher than at same time last year across markets. We may have our "potash" moment where customer only question is "when ?"
Napkin valuation POTENTIAL:
1.1 million tons @ $USD 1000 = $USD 1.1 billion sales = $CAD 1.4 billion sales
Market cap of 329 millions means valued at 0.25x sales. Going to 1x sales is $20 per share.
Profit of 10% is $CAD 140 millions = 2$/share earning potential. Going to a 10 p/e is $20 per share
So it could be a 4-bagger once the fog is lifted and it fires on all cylinders