KP Tissue Inc (KPT.TO)

#1 branded toilet paper in Canada and there won’t be a lot of technologies that can displace this kind of business. They are spending money for the future. Trying to institute a new project in the US to get more private-label demand. Signing up contracts and doing is slowly over time, which is depressing earnings right now. Trading at 25% discount to a Kimberly-Clark (KMB-N). 4.2% yield which he thinks will increase by the end of 2014.

Toilet paper, tissue paper, etc. This was a recent IPO. They have branded names such as Cashmere, Sponge Towel, etc. Have a nice relationship with Wal-Mart (WMT-N). Built a brand-new machine that will hopefully get more private-label business. At some point in time, the market will recognize that this is a nice stable, defensive product with a lovely dividend yield of 4.38%. Expects the dividend will be increased 3%-5% a year starting next year. Feels the valuation is worth $20-$25 a share.