RE:RE:RE:MKT Well Below $300 Million?CFX is way undervalued (less than 2x normal EBITDA and $250/t-$300/t pulp capacity).
Q4 should be a reasonably strong quarter with NBSK prices holding up, a strong US dollar, stabilizing operations and slowly improving rail car availability. I would guess $50M+ of EBITDA in Q4. If that is achieved, cash will start to accumulate.
The Company should absolutely be considering share repurchases or CFP should consider acquiring the minority shares. It’s unlikely there is a higher return use of capital for CFX (repurchases) or CFP (acquisition) at the moment.
CFX would also be a good take-out for one of the larger pulp players (Suzano, Auroco, IP, UPM etc.). I’m sure the Company is getting some outside attention at this share price.
It’s a bit surprising that we have not seen any insider buying. The new CEO seems great - love his focus on improving operational reliability. It would be nice to see him buy some shares though - especially at these levels.