Opinions Michael Sprung
Cascades IncCAS.TOTOP PICKMar 19, 2013
Michael SprungStock price when the opinion was issued
As of Jun 10, 2026. Market Open.
You might be interested:
Huge new facility is coming onstream, and fundamentals in containerboard are more solid than in the very competitive tissue market. Facility over budget, so will take a while to get a return. Focused on debt reduction.
Michael Sprung
Likes it, though shares have been down the past year. They fixed their operational issues. Demand remains strong in container board, and they opened a facility in Virginia which could raise margins. They sold their European division, so are more streamlined in operations. Pays around a 4% dividend. Still likes it.
Michael SprungThey've been hit by a lot of input costs, which may be easing now. It's hard to raise prices on tissue paper and costs have been rising on recycled fibre. Their new container board factory will operate soon. CAS is selling at the low end of its range historically. But be patient until the stock price doubles or even triples.
(Analysts’ price target is $9.83)
Michael Sprung;fill-opacity:1;'/%3e%3cpath%20d='M31%2018.6001V30H8V18.6001L14.1334%2022.4334L19.4999%2014L24.8669%2022.4334L31%2018.6001Z'%20fill='%23EE5432'%20style='fill:%23EE5432;fill:color(display-p3%200.9340%200.3310%200.1956);fill-opacity:1;'/%3e%3c/svg%3e){kind=small}
Premium content
Michael SprungMichael SprungPremium contentMichael Sprung
Bill Harris, CFAMichael SprungMichael Sprung
Robert McWhirter
Recently bought back in. It trades for half of book value. Lately they had announcements of product price increases. 3.8% yield. Margins will significantly improve. Balance sheet is stretched but the debt situation will be addressed by improving margins. Thinks it could be higher than 14.5 times earnings this year and 10-11 times next year.