Glenn MacNeill, P.Eng.
Fibrek Inc.
FBK-T
TOP PICK
Dec 18, 2003
This is a bet on pulp prices. Pulp has a good chance of doing very well next year. US election is a large consumer of paper and it is an Olympic year, another large consumer.
Pulp has been battered for the last few years so they had to cut distributions. Recently, we have seen the commodity bottom. Looking for a price increase which will benefit this company. Pulp demand is going up.
A very good mill and a low cost producer. A single asset type of trust with some volatility, so if anything should go wrong with that facility, they won't have cash flow. Demand for pulp has gone up and prices are near their cyclical highs.
A pulp mill in Quebec. Has a couple of issues. 1) Pulp pricing has not been vibrant due to competition out of South America/Asia and 2) Quebec has cut the allowable timber cut.
Has exposure to NBSK (Northern Bleached Softwood Kraft) pulp. Is unhedged, so if you are bullish on the Cdn$, it would be good. Not sure where pulp prices are going, so doesn't own. Also concerned about their input costs on woodchips. If pulp prices improve, he might have a different view.