KP Tissue Inc (KPT.TO)

The largest branded tissue paper maker in Canada. They also sell private label tissue in the US through Wal-Mart. You would think that it would be a no-brainer business, especially with the growing population. Doesn’t know why the stock has been under pressure. Generating a lot more free cash flow than what people expect, because a lot of their CapX is for growth CapX. Dividend is fully covered and it gives a nice yield. Thinks the stock is worth $16-$17 a share. He is just going to be patient.

This is Cashmere and Scotties. A similar company was bought for a lot more than it traded at recently. People are selling it because it went down.

Fundamentals have improved a lot since they went public. They sell branded tissue in Canada and private label tissue in the US. They have clearly laid out a roadmap of how their growth is going to happen and have delivered on that. Pays a very nice dividend. Got hurt by a rising US$ and input pricing. Better times are ahead. An excellent dividend which is fully covered. Expects that in the next 1-2 years, the company will be flush with cash and will either increase the dividends or launch another manufacturing plant to get a bigger share in the US. Dividend yield of 5%.

Has underperformed. Thought they had a pretty good 1^st quarter. The big issue is that they buy pulp in US dollars, the Cdn$ continues to go down and the input costs continue to go higher. Tried to offset this by raising prices, so we are not going to see the effect of this until the2nd, 3^rd and 4th quarters. Pays a very nice dividend. The new plant in the US will be used to sell private label tissues to Wal-Mart (WMT-N) and have guided that by 2017 it will be filled up. They are actually looking to open up another plant, because capacity and demand is growing. He sees the potential for a dividend increase next year.

(Top Pick May 21/14, Up 12.27%) It has not lived up to his expectations. It was one thing after another. They buy all their commodity in US$ and pay with Canadian dollars and this hurt their margins. This one is for patient investors. He expects a dividend increase next year or the year after.

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.

Makes toilet paper. Demand is not going away. The stock is not a huge trader, never put in a market order. He likes the company’s long term prospect. This is a competitive industry, but the dividend is good and he thinks you can make money on this.

Stock has underperformed, but pays a big, fat dividend. This is a branded toilet paper under the Cashmere brand in Canada, as well as private label brands in the US. Had a lousy year due to rising energy prices and pulp. It looks like things are reversing.

Ran into higher costs that all hit them at the same time. Input prices and product prices both rise and fall frequently. These guys are more worried about the next 5 years. They have a great relationship with Wal-Mart. They need to create more supply. Dividend should go higher next year. Great dividend.

(Market Call Minute.) Very pleased with the recovery in the stock in the past month and thinks there is still a lot more room for this to go higher.

Makes toilet paper. If there is ever a staple product that is not going to go out of business, toilet paper is going to be high on that list. Company commissioned a giant new plant in Tennessee, and is now coming up to full operation and what is expected in terms of margin. He expects to see free cash flow expand. Has a good yield 4.5%, which he expects to continue going forward.

(A Top Pick July 3/13. Down 0.32%.) Loves this company. Branded toilet paper and tissue company under the Cashmere brands. #1 leading market share in Canada. Has not gone anywhere, because energy and pulp prices have gone up. Also, has spent a lot of money building a new plant to get more exposure to Wal-Mart (WMT-N), but it hasn’t delivered the profits yet.

A terrific business to be in. Long-term, predictable revenue stream. Company has been slammed by higher input costs and misunderstood structure. At the end of the day, this has top quality toilet paper and is growing into the US. Dividend of 4.83% is totally safe. The major CapX spending is now over. He expects a dividend increase by the end of the year.

This stock has not worked out. It was a recent IPO in 2012-2013. Have been hit by a number of items such as higher pulp prices and higher energy prices. Thinks this is about to reverse coming into 2014. An interesting structure because it is not a company that owns a 15% interest in an operating company and some people are afraid of that structure. Pays a lovely dividend. Sees EBITDA rising over the next couple of years.

Does not see a compelling reason from the chart to buy it. 4.2% is a rather high yield for this stock.