Opinions Norman Levine
Cascades IncCAS.TOWATCHAug 14, 2018
Stock 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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Bill Harris, CFAMichael SprungMichael Sprung
Robert McWhirter
This company has two parts: Containerboard and tissue. Both are cyclical businesses. Containerboard depends on economic activity: the more activity, the more boxes are needed. That industry is looking better, partially because of what is happening in the wood industry. In contrast, there is overcapacity of tissue in North America. Buying Cascades now buys tissue while it is down and out and buys containerboard as it’s looking better. This is on his radar, but he’s not ready to buy it yet. He doesn’t recommend against starting a small position it it now, though he is not doing so.