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Tickers in this Article: GLT, KPPC, NP, UPMKY.PK
No Paper Tigers These
There's a lot to be said in the investment world for booking real profits from your stocks. Many a trader has watched his paper profit fly away when markets blew cold, or burn up completely when his company met an unexpectedly hot set of circumstances. That said, there are paper profits worth their while, too. Namely, those that come from successful paper companies.


IN PICTURES: Eight Ways To Survive A Market Downturn

Isn't it Good, Norwegian Wood?
We go to the frozen wastes of the Norwegian tundra to find our first paper producing investable company. Based in Helsinki, Finland, UPM-Kymmene Corporation (OTC:UPMKY) is a massive, global paper player that markets paper products across Europe and North America. The company has a market capitalization of $5 billion and trades with a trailing earnings multiple of just over 14. It also offers a healthy dividend - approximately 5.3% annually to investors.

From the beginning of April of this year, the company's shares went on a tear, ripping up the ticker and rising over 60% to stand at $9.96 (as of June 2).

The P.H. Glatfelter Company (NYSE:GLT) is a Pennsylvania-based maker of specialty papers with mills in the U.S., United Kingdom, France, Germany and the Philippines. The company makes everything from tea bags and coffee filters to playing cards and pressure-sensitive postage stamps, and recently trounced analysts' quarterly earnings estimates by delivering 25 cents per share against an expected 11 cents. (For more on analyst expectations, be sure to read Analyst Forecasts Spell Disaster For Some Stocks.)

GLT trades with a P/E of 9.4 and pays shareholders an annual 3.5% dividend. The stock is up about 125% since bottoming in early March.

Specialty Paper Producers have Momentum
Neenah Paper, Inc. (NYSE:NP) is predominantly a producer of specialty stationeries. Despite difficult times in the industry this last year, Neenah stock is up over 180% from its 52-week low. The shares have massive institutional support, with a full 83% of the available shares owned by professionals. The stock currently yields about 4.2% annually.

KapStone Paper and Packaging Corp. (NASDAQ:KPPC) shares have jumped by over 325% since hitting its low this year. The maker of kraft paper and linerboard products saw its stock begin to rise shortly before reporting dreadful earnings in mid-March.

KapStone stock trades with a price/earnings multiple of about six.

The Bottom Line
These issues were beaten to a pulp this past fall, but recent performance in the papermakers clearly puts them a cut above the general market. Those who do their homework are bound to book some weighty profits. (Read Buy When There's Blood In The Streets, to learn how contrarian investors find value in the worst market conditions.)

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