Consumer staples.  He was taking a look at it when it pulled back  He stayed away because the chart is telling him there is no clarity on share price given that input costs are on the rise.  It is too early to buy.

The tissue space in general is struggling with pricing, probably as a result of over pricing in North America. Having a pure play in this area is not something you would want to do. Expects it will be challenged for the next couple of quarters. Prefers Cascades (CAS-T), which has an offset with container board/cardboard packaging.

There are some certainties in life, and one of them is toilet paper. They are going to commission a new machine at their plant in Memphis Tennessee, which will increase output. It’s a competitive business. They do private label branding for the big box stores. Thinks earnings will come up and distribution will come up. Dividend yield of 4.8%.

The largest branded tissue manufacturer in Canada. Also, sells private label in the US. Trying to increase its private label exposure in the US and hopes to launch another tissue plant. These are all going to take time, money and effort. In the meantime, the stock has done absolutely nothing. On the flipside, you have a terrific dividend of almost 5%. They are investing for the future, which is not a bad thing. You are going to have to be patient. It is cheap on a valuation standpoint, but does have more debt than he would like.

Produces personal paper products. A consumers staples name, so a bit on the premium valuation side, but deservedly so, because in a recessionary environment, people look at these types of stocks. Dividend yield of about 5%. He probably wouldn’t own this for anything other than the dividend. Growth is pretty slow.

Finally having a good year. It has been doing fine over time. Things that were headwinds for them are finally going to become tailwinds. The Cdn$ seems to have stabilized. They’ve been able to raise prices on their branded tissue and toilet paper. They are the #1 brand for toilet and tissue paper in Canada. Also sells private label tissue paper into the US through Walmart. The good news is that their private label manufacturing facility is sold out. They are planning to build a new facility, and if they do, they may have to do an equity and debt raise. If that goes through, it may increase the float and make the stock more attractive for institutional investors. Thinks it is worth $20 today and $22 if they get the go-ahead on the new facility.

This has underperformed. The biggest branded tissue and toilet paper in Canada. It got hurt by the rise in the US$, which hurt earnings, as well as the rise in commodity prices. Those things have turned around, and the company had a monster of a quarter, but the stock didn’t react as well today as he would have thought. He thinks FV is $16 a share. Pays a fantastic dividend. Smart management which is working on growing the business. Dividend yield of 5%+.