Opinions
Barry Schwartz
KP Tissue Inc
KPT-T
COMMENT
Apr 20, 2015
$16.180
Stock price when the opinion was issued
Consumer Products
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Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research
KPT is a $101.6M company that pays a high yield of 7.1%. Its valuation is decent, but its balance sheet has been contracting for several years now. It's considered a consumer staples name, but we are not very impressed by the fundamentals or financials. Decent growth is expected over the next two years, but we would probably wait to see if fundamentals materially improve before investing here, given its negative momentum and contracting fundamentals.
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Consumer Products
Has been no oomph in the stock and has been disappointing to investors. Launched a new manufacturing facility to try and get more private label toilet paper and tissues into the US via Wal-Mart (WMT-N). They are slowly, but surely, filling the pipeline, and earnings are going to grow. Respectable dividend of 4.45%. Valuation is very attractive. He is hoping that 2016 is going to be the break out year for this. You are getting paid to wait.