Compared to its paper-making peers, Resolute Forest Products
) is still the smallest and the cheapest stock price for a paper
company, and a favorite of Guru
, a mega shareholder.
Headquartered in Montreal, Canada, Resolute Forest Products Inc.
calls itself a global leader in the forest products industry
including newsprint, commercial printing specialty papers, market
pulp and wood products. The company owns or operates over 40 pulp
and paper mills and wood products facilities in the United
States, Canada and South Korea, and sells its products in 90
, founder of Fairfax Financial Holdings, has earned the
prestigious moniker of "the
of Canada." Watsa owns 24,776,519 shares of Resolute Forest
Products Inc. (
), with a portfolio weighting of 13.1%. Resolute Forest shares
are traded at around $16.07 with a P/E ratio of 55.9 and P/S
ratio of 0.4.
His holding history:
With a market cap of $1.52 billion, Montreal's Resolute Forest
Products is especially geared to documenting sustainability
practices. The company's 2012 Annual Report describes a company
still emerging from credit protection.
Comment Dites Vous AbitibiBowater?
Filing for creditor protections in the U.S and Canada in 2009,
with a debt of approximately USD6 billion, the company, then
named "AbitibiBowater," won court approval to finance
restructuring. The company emerged from creditor protection in
December 2010, and changed its operating name from AbitibiBowater
to Resolute Forest Products about a year later.
Resolute Forest Products generates revenue per category, as
follows: newsprint for 36%, specialty papers for 25%, market pulp
for 18%, wood products for 11% and coated papers for 10%. These
products combined generated 2012 total sales at $4.5 billion,
with an adjusted EBITDA of $3.86 billion. Net cash provided by
operating activities is listed at $2.66 billion.
Comparing Paper and Pulp Peers
Still the smallest company and the cheapest stock price,
Montreal's Resolute Forest Products has a market cap of $1.52
billion. International Paper (
, with a market cap of $20.48 billion, makes industrial
packaging, printing papers and consumer packaging, and is the
largest manufacturer of container board in the U.S. Weyerhaeuser
, with a market cap of $17.04 billion, trades in pulp and timber,
and grows and harvests trees, builds homes and makes a range of
forest products. Sonoco Products Company (
, with a market cap of $3.51 billion, makes industrial and
Today's share prices:
International Paper (
Sonoco Products Company (
Weyerhaeuser Co. (
Resolute Forest Products Inc. (
In the same year Resolute was emerging from credit protection,
2010, the company joined with Greenpeace and other organizations
to become a founding member of the Canadian Boreal Forest
Agreement. The group formalized an agreement to protect the
diversity of ecosystems and wildlife within the Boreal region.
In his 2012 message to shareholders, Resolute's Richard Garneau,
president and CEO, stated, "We work hard to integrate
sustainability into the way we do business because we believe
this approach brings value to our customers, our shareholders,
our employees and the communities where we live and work."
In 2012 Resolute Forest Products reported progress on its key
sustainability commitments, including the areas of carbon
management, fiber sourcing, forest certification, health and
safety and product stewardship that involves using less fiber and
fewer chemicals than competitive papers. The company has also
developed and published a formal policy on First Nations
relations with Canada's indigenous tribes.
According to CEO Garneau, "Resolute recognizes that focusing on
sustainability is good business. Our decision to produce a report
combining financial and sustainability performance demonstrates
our commitment to balancing environmental, social and economic
"Canada's Warren Buffett," Prem Watsa's top buys, sells and
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