Long Position on RFP @ $16.25 on 4/28/2021 (Momentum)

Resolute Forest Products Inc. (RFP), together with its subsidiaries, operates in the forest products industry in the United States, Canada, Mexico, and internationally.

Bullish Flag on $ RFPThe company operates through four segments: Market Pulp, Tissue, Wood Products, and Paper. The Market Pulp segment offers virgin and recycled bleached kraft pulp, which is used to make a range of consumer products, including tissue, packaging, specialty paper products, diapers, and other absorbent products.

The Tissue segment provides various tissue products, such as recycled and virgin paper products for the away-from-home and retail markets; and sells parent rolls. The Wood Products segment produces construction-grade and spruce-pine-fir lumber products, wood chips, bed frame components, finger joints, and furring strips for pulp and paper mills, as well as I-joists for the construction industry.

The Paper segment offers newsprint to newspaper publishers, as well as to commercial printers for a range of uses comprising inserts and flyers. This segment also provides various uncoated mechanical papers, including supercalendered and white papers, as well as uncoated freesheet papers to commercial printers, direct mailers, publishers, catalogers, and retailers.

Its specialty papers are used in books, retail inserts, direct mail, coupons, magazines, catalogs, bags, and other commercial printing applications. This segment sells specialty papers to commercial printers, direct mailers, publishers, catalogers, and retailers.

The company also produces electricity at six cogeneration facilities and seven hydroelectric dams.

Last week, the stock announced that it amended its $360 million loan, to repay its $180 million loan before the amendment term loans by drawing on the revolving facility. This amendment should increase overall earnings and push share prices higher.

Entry Point: $16.25

Stop Loss: $15.45

Trading Range: $4.49 - $70.66

Target Price: $17.85

 

Updates

7/22/2021 11:15:05 AM

RFP closed at $11.40

Position closed on 7/22/2021 at price of $11.40 with a -29.85% loss in 85 days.

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