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Domtar Inc. (DTC.TO)

WEAK BUY
For the long term, it's probably the best company in its sector. Industry has had pressures because of currency, dropping input costs and dropping fibre costs. If you are patient, and a long term holder, it should work out.
DON'T BUY
A good company, but with the weakness in the US$, even though the price of some of the paper products has been going up, they haven't been able to realize it in Cdn$'s. Earnings have been disappointing.
DON'T BUY
Indifferent to the forest stocks. Can't see what's going to drive them forward. There is upside potential in this stock, but not enough to warrant it. Maybe enough for a trade.
DON'T BUY
Probably the best forest product company in Canada being that is so well diversified and has generated decent results, but its most recent results were quite disappointing. Forest product companies are very sensitive to the Cdn$. Can't see much improvement in their earnings over the next little while.
DON'T BUY
Could go as low as $11.77 even though their model price is around $18. Stock has been hit with all kinds of downward revisions. The strong Cdn$ is killing these guys.
DON'T BUY
A well run company in a difficult industry. Not huge risks in this stock, but would prefer Canfor because of the free cash it is generating. Also prefers Brazilian forest stocks which has a competitive cost advantage.
DON'T BUY
The paper and forest stocks are sectors they have completely avoided. Did not come up in their stock selection model. A lot of them have been hurt by the strong Cdn$.
BUY
The forest sector hasn't gone anywhere in the last year. If the economy grows the way he thinks it will, you should see a pick up in this stock as well as Canfor, Cascade, etc. Stock is cheap. A contrarian pick.
HOLD
Long term chart shows the trend line slightly sloped up. The Cdn$ has hurt a lot of these stocks and if he is right that the US$ will recover, it should be OK.
DON'T BUY
Strong growth in the market, positive GDP numbers, but it's a paperless recovery. This is the best company in the industry now but it's too expensive.
BUY
Outlook is quite good. Good contrarian buy. Expects dramatic improvement for the whole sector.
WEAK BUY
Has been trying to get a price increase for its paper for the last 6 weeks. Cheap.
TRADE
Demand for their products is more stable than lumber. A cyclical, so you have to watch other forest stocks and see where they are moving.
PAST TOP PICK
(A Top Pick June 17/04. Down 6.5%.) A little disappointed. Expected that the price for paper was on its way up.
PAST TOP PICK
(Past top pick June 17/04. No change.) Still likes. Feels there is a leverage in the paper business.
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