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Strategies & Market Trends : Value Investing

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To: bruwin who wrote (66528)2/14/2021 9:59:29 PM
From: scbeachbum1 Recommendation   of 78817
 
Look at the analyst estimates for RFP. $1.15 a share in earnings up from 73 cents a week ago, high estimate of $1.64. That's not bad at all for one quarter on a stock that trades at $10. They are literally printing money, and high lumber helps a ton, and it doesn't look like it's going to be slowing down, if anything there might be another "super spike" in prices there as builders have been holding off buying lumber, but now getting into Spring construction season in the hottest real estate market ever, they have no choice but to buy lumber. On top of that pulp prices are rocketing higher and paper too, so they have some good tailwinds. They also paid down debt, which equates to higher EPS going forward. There's a lot of positives going for RFP at the moment and the stock still trades at a discount to tangible book, even with them printing all this cash.
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