Cascades Inc

CAS-T

TSE:CAS

14.13
0.01 (0.07%)
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
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.

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