Waiting for a better price on the stock of a company you like can work out really well sometimes, but then there are cases like Neenah Paper (NP) where the shares just keep marching upward - to the tune of better than 30% move since I last wrote about the company.
I
do like the company's focus on value-added specialty papers where there
is relatively less competition and less price sensitivity. I also like
that management seems focused on identifying future acquisition
opportunities, as free cash flow generation over the next few years
should be in excess of the company's deleveraging needs. What I still
don't like so much is the price you have to pay for all of that - I
don't think the company has gotten 30% better in the last six months and
while a company that can generate double-digit ROICs deserves a
premium, this one still seems pricey.
Read the full article at Seeking Alpha:
Neenah Paper Stays A Few Steps Ahead
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