Bill CarriganCascades IncCAS.TOTOP PICKNov 06, 2015

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.

It is halfway between the bottom and top of its chart. It shouldn't be overly troubled by a recession but like many other companies would be affected.

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.

They'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)