Cascades Inc

CAS-T

TSE:CAS

13.90
0.23 (1.63%)
Cascades is a company that produces, converts, and markets packaging and tissue products composed mainly of recycled fibres. Cascades employs more than 11,000 people in more than 100 operating units in North America and Europe.
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Analysis and Opinions about CAS-T

Signal
Opinion
Expert
TOP PICK
TOP PICK
April 24, 2020
They sell paper products from recycled fibers. It has a 10% free cash flow yield and attracts at .68 times enterprise value. He bought in at $12.50. Yield 2.33% (Analysts’ price target is $13.83)
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Cascades Inc (CAS-T)
April 24, 2020
They sell paper products from recycled fibers. It has a 10% free cash flow yield and attracts at .68 times enterprise value. He bought in at $12.50. Yield 2.33% (Analysts’ price target is $13.83)
WEAK BUY
WEAK BUY
August 8, 2019
You will not retire on this stock but it will do little wrong to your portfolio. They make good investments. They are a diversifier and a stable kind of name.
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Cascades Inc (CAS-T)
August 8, 2019
You will not retire on this stock but it will do little wrong to your portfolio. They make good investments. They are a diversifier and a stable kind of name.
PAST TOP PICK
PAST TOP PICK
July 5, 2019

(A Top Pick Jul 20/18, Up 0.1%) Fell a fair bit and then sort of bounced back. They make 100% recycled and recyclable paper. Excited with the future. Signed a deal with Amazon. Also new insulated packaging that's fully recyclable, to keep things cool for food delivery companies. Thinks the company has very good growth prospects.

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Cascades Inc (CAS-T)
July 5, 2019

(A Top Pick Jul 20/18, Up 0.1%) Fell a fair bit and then sort of bounced back. They make 100% recycled and recyclable paper. Excited with the future. Signed a deal with Amazon. Also new insulated packaging that's fully recyclable, to keep things cool for food delivery companies. Thinks the company has very good growth prospects.

WATCH
WATCH
June 14, 2019
Great stable business in recycling. Lots of moving parts, and he can't figure it out. He'll stay on the sidelines for now.
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Cascades Inc (CAS-T)
June 14, 2019
Great stable business in recycling. Lots of moving parts, and he can't figure it out. He'll stay on the sidelines for now.
HOLD
HOLD
May 16, 2019
It was a past pick a while ago but it did not do well. He would stay patient with it. He is a decade trader rather than a day trader. You may want to buy a little more at the lower price. This is a long term play as they come out with compostable packaging for packaged and home delivered food.
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Cascades Inc (CAS-T)
May 16, 2019
It was a past pick a while ago but it did not do well. He would stay patient with it. He is a decade trader rather than a day trader. You may want to buy a little more at the lower price. This is a long term play as they come out with compostable packaging for packaged and home delivered food.
DON'T BUY
DON'T BUY
May 9, 2019
You should have done well but didn't. It has continued its trend down. There is nothing in the chart. Seasonally it is not time to buy it. He would not get into it.
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You should have done well but didn't. It has continued its trend down. There is nothing in the chart. Seasonally it is not time to buy it. He would not get into it.
WEAK BUY
WEAK BUY
May 1, 2019
The valuation has become fairly compelling. It is at half book value, but they have had issues in the tissue segment. He has seen some of their competitors beat expectations so he is hopeful they will have positive news as well.
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The valuation has become fairly compelling. It is at half book value, but they have had issues in the tissue segment. He has seen some of their competitors beat expectations so he is hopeful they will have positive news as well.
DON'T BUY
DON'T BUY
April 23, 2019
He exited Q4 2018. CAS will benefit from e-commerce shipping, but boxboard demand has been a little weak lately, so this sector has been pressured. CAS carries some debt; he wants them to deleverage more. Well-run company and cheap now, but be cautious.
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Cascades Inc (CAS-T)
April 23, 2019
He exited Q4 2018. CAS will benefit from e-commerce shipping, but boxboard demand has been a little weak lately, so this sector has been pressured. CAS carries some debt; he wants them to deleverage more. Well-run company and cheap now, but be cautious.
BUY
BUY
March 20, 2019
There's been an oversupply of tissue in the market. Their container board and boxboard businesses have been steady, but they have come off lately. CAS is getting cheap and attractive. Overall, they've made some improvements to their balance sheet. Current stock prices reflect the competitive market they're in. This is a good long-term investment.
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Cascades Inc (CAS-T)
March 20, 2019
There's been an oversupply of tissue in the market. Their container board and boxboard businesses have been steady, but they have come off lately. CAS is getting cheap and attractive. Overall, they've made some improvements to their balance sheet. Current stock prices reflect the competitive market they're in. This is a good long-term investment.
PAST TOP PICK
PAST TOP PICK
February 5, 2019
(A Top Pick Apr 24/18, Down 21%) Recent earnings have been reasonably strong, but he sold earlier at $11.50 to cut his losses and risk. There's a lot of new capacity in the containerboard industry coming, and there are worries about weakening pricing going with worries over the economy. That's why this stock has been under pressure. Demand for boxes moves up and down with the economy. A cyclical.
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Cascades Inc (CAS-T)
February 5, 2019
(A Top Pick Apr 24/18, Down 21%) Recent earnings have been reasonably strong, but he sold earlier at $11.50 to cut his losses and risk. There's a lot of new capacity in the containerboard industry coming, and there are worries about weakening pricing going with worries over the economy. That's why this stock has been under pressure. Demand for boxes moves up and down with the economy. A cyclical.
BUY
BUY
November 19, 2018
Likes it. Globally, it's one of the cheapest valuations in its sector. It's a way to play e-commerce, since CAS makes boxes that packages are delivered in. Generates a lot of free cash flows. Insiders own a lot of stock.
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Cascades Inc (CAS-T)
November 19, 2018
Likes it. Globally, it's one of the cheapest valuations in its sector. It's a way to play e-commerce, since CAS makes boxes that packages are delivered in. Generates a lot of free cash flows. Insiders own a lot of stock.
COMMENT
COMMENT
November 16, 2018
Would you take a full position? If you bought it as a trade, and the trade is there with the 10% pop, sell it. But if you did it as an investment, he’d continue to hold. Thinks there’s upside from here, and he’d buy some more.
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Cascades Inc (CAS-T)
November 16, 2018
Would you take a full position? If you bought it as a trade, and the trade is there with the 10% pop, sell it. But if you did it as an investment, he’d continue to hold. Thinks there’s upside from here, and he’d buy some more.
COMMENT
COMMENT
October 16, 2018

All forestry stocks are cyclical especially pulp and paper. If you stick with CAS and forestry, then diversify your portfolio instead to something less cyclical, at least non-paper stocks but are in forestry if you want to stay in this space.

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Cascades Inc (CAS-T)
October 16, 2018

All forestry stocks are cyclical especially pulp and paper. If you stick with CAS and forestry, then diversify your portfolio instead to something less cyclical, at least non-paper stocks but are in forestry if you want to stay in this space.

DON'T BUY
DON'T BUY
September 4, 2018

This is a big player in recycle paper products and tissue. This is, historically, a very well run company. It is a cyclical business. They have a manageable level of debt, but a cyclical business should have a stronger balance sheet. They are currently suffering from tissue prices and not getting enough from recycled products, so they are facing margin pressure. He likes the company but there are better places to invest.

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Cascades Inc (CAS-T)
September 4, 2018

This is a big player in recycle paper products and tissue. This is, historically, a very well run company. It is a cyclical business. They have a manageable level of debt, but a cyclical business should have a stronger balance sheet. They are currently suffering from tissue prices and not getting enough from recycled products, so they are facing margin pressure. He likes the company but there are better places to invest.

PAST TOP PICK
PAST TOP PICK
September 4, 2018

(Past Top Pick, July 20, 2018, Up 9%) This company really understands renewables such asin their water use and packaging (100% recyclable material). He's excited with them moving into the food packaging industry. Cascades'
packaging is biodgradable.

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Cascades Inc (CAS-T)
September 4, 2018

(Past Top Pick, July 20, 2018, Up 9%) This company really understands renewables such asin their water use and packaging (100% recyclable material). He's excited with them moving into the food packaging industry. Cascades'
packaging is biodgradable.

WATCH
WATCH
August 14, 2018

This company has two parts: Containerboard and tissue. Both are cyclical businesses. Containerboard depends on economic activity: the more activity, the more boxes are needed. That industry is looking better, partially because of what is happening in the wood industry. In contrast, there is overcapacity of tissue in North America. Buying Cascades now buys tissue while it is down and out and buys containerboard as it’s looking better. This is on his radar, but he’s not ready to buy it yet. He doesn’t recommend against starting a small position it it now, though he is not doing so.

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Cascades Inc (CAS-T)
August 14, 2018

This company has two parts: Containerboard and tissue. Both are cyclical businesses. Containerboard depends on economic activity: the more activity, the more boxes are needed. That industry is looking better, partially because of what is happening in the wood industry. In contrast, there is overcapacity of tissue in North America. Buying Cascades now buys tissue while it is down and out and buys containerboard as it’s looking better. This is on his radar, but he’s not ready to buy it yet. He doesn’t recommend against starting a small position it it now, though he is not doing so.

TOP PICK
TOP PICK
July 20, 2018

Loves this company. A paper company that doesn’t cut down any trees. Use 100% recycled paper. Look to identify efficiencies throughout the entire process. More a corporate than a consumer play. Facilities have begun using sustainability as credibility. Yield is 1.3%. (Analysts’ price target is $12.06.)

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Cascades Inc (CAS-T)
July 20, 2018

Loves this company. A paper company that doesn’t cut down any trees. Use 100% recycled paper. Look to identify efficiencies throughout the entire process. More a corporate than a consumer play. Facilities have begun using sustainability as credibility. Yield is 1.3%. (Analysts’ price target is $12.06.)

BUY WEAKNESS
BUY WEAKNESS
May 30, 2018

He has been watching this closely. It trades below book value, which has historically been a good buy signal. They have had some operational issues, but their input costs have been going down which should overall improve margins. Container board sales have not been as strong as hoped. The tissue industry is also somewhat oversupplied right now. Buying under $12 is a good area, where he thinks it would go back to $15 to $18.

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Cascades Inc (CAS-T)
May 30, 2018

He has been watching this closely. It trades below book value, which has historically been a good buy signal. They have had some operational issues, but their input costs have been going down which should overall improve margins. Container board sales have not been as strong as hoped. The tissue industry is also somewhat oversupplied right now. Buying under $12 is a good area, where he thinks it would go back to $15 to $18.

DON'T BUY
DON'T BUY
May 28, 2018

He doesn't like stocks trading at 52-week lows. At some point, you have to cut this stock out or close your eyes and wait for a recovery.

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Cascades Inc (CAS-T)
May 28, 2018

He doesn't like stocks trading at 52-week lows. At some point, you have to cut this stock out or close your eyes and wait for a recovery.

PAST TOP PICK
PAST TOP PICK
April 24, 2018

(A Top Pick February 15, 2017. Down 8%). He still really likes this company and it is still one of his largest positions. The fundamentals are about as strong as they have ever been.

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Cascades Inc (CAS-T)
April 24, 2018

(A Top Pick February 15, 2017. Down 8%). He still really likes this company and it is still one of his largest positions. The fundamentals are about as strong as they have ever been.

TOP PICK
TOP PICK
April 24, 2018

He is particularly interested in their containerboard business, which is the main input into boxes (for example the kind of boxes used by Amazon). They are benefitting strongly from the growth in e-commerce. Limited new supply of containerboard. The industry is operating at 97% of capacity. Many price increases are going through. They use a lot of recycled fiber for inputs to containerboard and other paper and recycled fiber is going down in price while containerboard is going up in price. (Analysts’ price target is 18.25$)

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Cascades Inc (CAS-T)
April 24, 2018

He is particularly interested in their containerboard business, which is the main input into boxes (for example the kind of boxes used by Amazon). They are benefitting strongly from the growth in e-commerce. Limited new supply of containerboard. The industry is operating at 97% of capacity. Many price increases are going through. They use a lot of recycled fiber for inputs to containerboard and other paper and recycled fiber is going down in price while containerboard is going up in price. (Analysts’ price target is 18.25$)

WATCH
WATCH
April 13, 2018

This company makes recycling products. Online purchasing is leading to higher needs for cardboard and recycling. This is still a little expensive, but would buy it at lower levels.

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Cascades Inc (CAS-T)
April 13, 2018

This company makes recycling products. Online purchasing is leading to higher needs for cardboard and recycling. This is still a little expensive, but would buy it at lower levels.

SELL
SELL
January 18, 2018

He has a small short position. It is not a high conviction short, but does not have a strong price momentum.

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Cascades Inc (CAS-T)
January 18, 2018

He has a small short position. It is not a high conviction short, but does not have a strong price momentum.

BUY
BUY
November 24, 2017

Had a big miss last quarter, largely on the back of their tissue exposure, so this is a pretty opportune time to be buying. The free cash flow is in the neighbourhood of 15%. If there was an upswing in the tissue space, this would benefit, but is not something he is holding his breath for.

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Cascades Inc (CAS-T)
November 24, 2017

Had a big miss last quarter, largely on the back of their tissue exposure, so this is a pretty opportune time to be buying. The free cash flow is in the neighbourhood of 15%. If there was an upswing in the tissue space, this would benefit, but is not something he is holding his breath for.

PAST TOP PICK
PAST TOP PICK
November 24, 2017

(A Top Pick Sept 15/16. Up 6%. Up 6%.) The 3rd quarter was not good. Owning down here is going to end up looking very good a year from now.

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Cascades Inc (CAS-T)
November 24, 2017

(A Top Pick Sept 15/16. Up 6%. Up 6%.) The 3rd quarter was not good. Owning down here is going to end up looking very good a year from now.

COMMENT
COMMENT
November 14, 2017

He doesn’t follow this closely, but does follow the space. Hurricanes created disruptions on resin supply for all these packaging companies. Prices have been rising and eating into the margins. These are generally lower margin companies, so it is a big deal when you start seeing margins erode. They have the ability to pass these increases on to the customer, but that won’t happen until down the road. There may be a few quarters of lower results than what you expect. When you get past 2 quarters, you should be fine with these companies. This company is okay, but he prefers CCL Industries (CCL.B-T).

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Cascades Inc (CAS-T)
November 14, 2017

He doesn’t follow this closely, but does follow the space. Hurricanes created disruptions on resin supply for all these packaging companies. Prices have been rising and eating into the margins. These are generally lower margin companies, so it is a big deal when you start seeing margins erode. They have the ability to pass these increases on to the customer, but that won’t happen until down the road. There may be a few quarters of lower results than what you expect. When you get past 2 quarters, you should be fine with these companies. This company is okay, but he prefers CCL Industries (CCL.B-T).

PAST TOP PICK
PAST TOP PICK
June 28, 2017

(A Top Pick March 2/17. Up 32.26%.) He wanted to take advantage of the trend of above average growth and shipping activity. The period of seasonal strength is between mid-March and late May, which gives about an average of about 11.6% about 65% for the past 20 years. This is still positive and still trending higher.

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Cascades Inc (CAS-T)
June 28, 2017

(A Top Pick March 2/17. Up 32.26%.) He wanted to take advantage of the trend of above average growth and shipping activity. The period of seasonal strength is between mid-March and late May, which gives about an average of about 11.6% about 65% for the past 20 years. This is still positive and still trending higher.

TOP PICK
TOP PICK
March 2, 2017

Tissues and container boards. He is playing off the theme of improving shipments in the economy. Just reported earnings, and the market essentially gave them a pass as it didn’t trade down too much. Shipments are improving and this company is the way to play that. Between mid-March and the end of May is the period of seasonal strength. It gains an average of about 11.6% over that time frame. Good percentage, right space, fundamental data supports it, and it is starting to break resistance at about $13.14. Dividend yield of 1.18%. (Analysts’ price target is $15.)

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Cascades Inc (CAS-T)
March 2, 2017

Tissues and container boards. He is playing off the theme of improving shipments in the economy. Just reported earnings, and the market essentially gave them a pass as it didn’t trade down too much. Shipments are improving and this company is the way to play that. Between mid-March and the end of May is the period of seasonal strength. It gains an average of about 11.6% over that time frame. Good percentage, right space, fundamental data supports it, and it is starting to break resistance at about $13.14. Dividend yield of 1.18%. (Analysts’ price target is $15.)

TOP PICK
TOP PICK
February 15, 2017

They have 2 core businesses, tissue and container board. He likes the container board side in particular because of the growing economy where people are shipping more things in boxes. It is a fairly tight market right now for container board and there have been price increases in the last couple of days. As more and more online shopping occurs, that is going to lead to more things shipped in boxes. Trading at only about 5.5X enterprise value to EBITDA. Dividend yield of 1.15%. (Analysts’ price target is $14.60.)

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Cascades Inc (CAS-T)
February 15, 2017

They have 2 core businesses, tissue and container board. He likes the container board side in particular because of the growing economy where people are shipping more things in boxes. It is a fairly tight market right now for container board and there have been price increases in the last couple of days. As more and more online shopping occurs, that is going to lead to more things shipped in boxes. Trading at only about 5.5X enterprise value to EBITDA. Dividend yield of 1.15%. (Analysts’ price target is $14.60.)

PAST TOP PICK
PAST TOP PICK
January 25, 2017

(A Top Pick Dec 9/15. Up 11.74%.) A company that is really well-managed, but does tend to go through cycles. He tends to trade this.

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Cascades Inc (CAS-T)
January 25, 2017

(A Top Pick Dec 9/15. Up 11.74%.) A company that is really well-managed, but does tend to go through cycles. He tends to trade this.

PAST TOP PICK
PAST TOP PICK
November 9, 2016

(Top Pick Sept 15/16, Up 2.63%) A great business, and solid free cash flow story. The balance sheet is improving every day. They use a lot of recycled resources, so would not be affected by Trump as much as the forestry industry will be.

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Cascades Inc (CAS-T)
November 9, 2016

(Top Pick Sept 15/16, Up 2.63%) A great business, and solid free cash flow story. The balance sheet is improving every day. They use a lot of recycled resources, so would not be affected by Trump as much as the forestry industry will be.

WATCH
WATCH
October 20, 2016

Cash ROE is 34% which is healthy. The chart is very interesting showing a consolidation period from February to September, and forming what he would call a tea cup and handle. Wait for it to break out, ideally on above average volume.

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Cascades Inc (CAS-T)
October 20, 2016

Cash ROE is 34% which is healthy. The chart is very interesting showing a consolidation period from February to September, and forming what he would call a tea cup and handle. Wait for it to break out, ideally on above average volume.

TOP PICK
TOP PICK
September 15, 2016

It is a large free cash flow story. It is at an inflection point. There is still a lot of upside on this one. We just saw a big increase in container board pricing in North America. He thinks they will use their free cash flow to pay down debt. He thinks at some point it could be taken over.

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Cascades Inc (CAS-T)
September 15, 2016

It is a large free cash flow story. It is at an inflection point. There is still a lot of upside on this one. We just saw a big increase in container board pricing in North America. He thinks they will use their free cash flow to pay down debt. He thinks at some point it could be taken over.

COMMENT
COMMENT
June 17, 2016

A wonderfully run company with great assets. The problem is that they are full of debt. Until they pay off a lot of their debt, he is afraid to go near them. They are in 2 main businesses, tissues such as toilet paper and hand tissues as well as container and cardboard. This part is not economically sensitive and is mostly private label. The other side is box board and container board, packaging, which is much more economically sensitive.

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Cascades Inc (CAS-T)
June 17, 2016

A wonderfully run company with great assets. The problem is that they are full of debt. Until they pay off a lot of their debt, he is afraid to go near them. They are in 2 main businesses, tissues such as toilet paper and hand tissues as well as container and cardboard. This part is not economically sensitive and is mostly private label. The other side is box board and container board, packaging, which is much more economically sensitive.

DON'T BUY
DON'T BUY
April 11, 2016

There have been some concerns over pricing pressures from heavy competition. Their industry has a weaker outlook this year.

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Cascades Inc (CAS-T)
April 11, 2016

There have been some concerns over pricing pressures from heavy competition. Their industry has a weaker outlook this year.

TOP PICK
TOP PICK
December 9, 2015

Have really driven synergies through their business and tried to cut costs. Also, benefiting from selling a lot of their product into the US on the box board and container board side of things. Those prices have been going up, and as long as the economy stays fairly steady, that is probably going to continue. They are getting the benefit of the US$. Trading at a fairly reasonable multiple.

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Cascades Inc (CAS-T)
December 9, 2015

Have really driven synergies through their business and tried to cut costs. Also, benefiting from selling a lot of their product into the US on the box board and container board side of things. Those prices have been going up, and as long as the economy stays fairly steady, that is probably going to continue. They are getting the benefit of the US$. Trading at a fairly reasonable multiple.

TOP PICK
TOP PICK
November 6, 2015

This fits in with his global growth theme. Being a cyclical and just breaking out, it hit a 52 week high. The 1st 52 week high will not be the last. It is reasonably liquid, had a breakout and is a sector outperform.

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Cascades Inc (CAS-T)
November 6, 2015

This fits in with his global growth theme. Being a cyclical and just breaking out, it hit a 52 week high. The 1st 52 week high will not be the last. It is reasonably liquid, had a breakout and is a sector outperform.

PAST TOP PICK
PAST TOP PICK
April 28, 2015

(A Top Pick May 8/14. Up 17.46%.) This has gone under a transition over the last couple of years, and they seem to be doing much better now in the box board container market. The cost of materials has mitigated margins to some extent.

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Cascades Inc (CAS-T)
April 28, 2015

(A Top Pick May 8/14. Up 17.46%.) This has gone under a transition over the last couple of years, and they seem to be doing much better now in the box board container market. The cost of materials has mitigated margins to some extent.

TOP PICK
TOP PICK
May 8, 2014

Earnings today were a bit light because of lower tissue shipments and prices on tissue, but their packaging products are doing quite well. He is seeing them doing better in box board and container board, etc. Have invested in plant facilities and equipment over the last few years. Feels they are addressing concerns about the balance sheet. He can see fairly significant capital appreciation potential.

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Earnings today were a bit light because of lower tissue shipments and prices on tissue, but their packaging products are doing quite well. He is seeing them doing better in box board and container board, etc. Have invested in plant facilities and equipment over the last few years. Feels they are addressing concerns about the balance sheet. He can see fairly significant capital appreciation potential.

TOP PICK
TOP PICK
March 19, 2013

Recently bought back in. It trades for half of book value. Lately they had announcements of product price increases. 3.8% yield. Margins will significantly improve. Balance sheet is stretched but the debt situation will be addressed by improving margins. Thinks it could be higher than 14.5 times earnings this year and 10-11 times next year.

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Cascades Inc (CAS-T)
March 19, 2013

Recently bought back in. It trades for half of book value. Lately they had announcements of product price increases. 3.8% yield. Ma