WHAT? Someone else on my private thread? I was talking to myself...
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Welcome. Nope, I am not allergic to money. And we all need some non-tech holdings to balance out the volitility of the tech holdings. I really like this stock, by the way, though it sure isn't exciting (or is it?).
Have they committed to a buyback? Don't know. What I can tell you for a fact is that unlike the other companies that talk about buybacks but don't do it, BKI actually has done it in the past. I get so tired of the companies that buy back shares and then issue millions of stock options so that the shares outstanding actually rise. If Microsoft makes a billion dollars, then spends a billion buying back shares, but issues enough options so that the shares outstanding stay the same, how much did they actually make for shareholders?
In my opinion this is a growing company that is a leader in specialized cellulose, yet they are priced as if they are a maker of generalized pulp, a commodity products. They deal with both wood and cotton based cellulose. The Canadian acquisition is just another example of the company looking for profitable nitches that provide opportunities for growth. The bottom line has grown at a 75% rate for the last 5 years. They probably can't continue that, but I'd bet that they'll figure our a way to exceed the analysts forecasts of 7% growth over the next 5 years.
In short, I like this company, and the valuation is very reasonable. I wish I'd found them sooner, but I'm in at 35 1/2 or so. The one downside is that P&G has a committment to buy from them until I think 2002, but after that, they could buy from other sources.
Good luck, and welcome,
Carl |
