Opinions Michael Sprung
Cascades IncCAS.TOTOP PICKMay 08, 2014
Michael SprungStock price when the opinion was issued
As of Jun 10, 2026. Market Open.
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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)
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Robert McWhirter
Earnings today were a bit light because of lower tissue shipments and prices on tissue, but their packaging products are doing quite well. He is seeing them doing better in box board and container board, etc. Have invested in plant facilities and equipment over the last few years. Feels they are addressing concerns about the balance sheet. He can see fairly significant capital appreciation potential.