Packaging and Forest Products
Vertical Research sees two key themes dominating the investment discussion in Packaging and Forest Products over the next one to three years: (1) the secular structural improvements in U.S. containerboard and global fluff pulp, and (2) relative winners and losers from potential changes in regulations, corporate tax policy, and longer-term interest rates in the US. The virgin fiber-based United States containerboard/box system should benefit from its near-complete vertical integration coupled with a looming tightness in recyclable materials required by overseas producers. We also see the global market for fluff, or absorbent, pulps benefiting from recent consolidation moves. We also see the containerboard and fluff pulp names as “relative winners” in an environment of lower corporate tax rates and higher longer-term interest rates induced by accelerated economic growth. On the other hand, we see the rigid/flexible packaging companies as well as the timber REITs as being less positively impacted in such an environment.
- International Paper Co (IP)
- Domtar Corp (UFS)
Betting big on on wood stocks 171
November 22, 2017
PACKAGING AND FOREST PRODUCTS - VERTICAL MATERIALS DINNER PROVIDES TIMBER, CONTAINERBOARD INSIGHTS
Like Real Estate, Timber is About "Location, Location, Location"
November 20, 2017
WESTROCK - FLORENCE MILL INVESTMENT: SHORT TERM (CASH) DRAIN, LONG TERM GAIN
Adjusting Model for Major Investment