|
 |
|
|
A market capitalization of $393 million holds a mid-cap position. |
|
|
Released on Tuesday, June 12th, 2012, 2:00 PM ET
Pittsburgh, PA (SpeculatingStocks) - Neenah Paper, Inc. (NYSE:NP) worth the paper it prints? Well based on a projection of Neenah's sales, it could be undervalued. Ending trading on Monday, June 11th, 2012 at $24.66 per share (4:00 PM), the stock was only trading at 12.68 times earnings of $1.94 per share. What is interesting is how Neenah has niche differentiated in order to stay afloat, actually rather thrive in a global technological environment which is constantly striving to be greener and generally use less paper as a matter of convenience.
Neenah has found a special fledgling share of the market to develop in, both the technological products market which provides the high-end, high-margin products required to sustain the company's development and in the high-end paper markets which, although hold lower margins, will produce the needed immediate cash-flows from more frequent sales. In effect, Neenah is keeping the dream of sending a personal letter written via a quill pen and inscribed on the most luxurious parchment one can purchase.
With analysts estimating that this fiscal year's EPS will come in around $2.85 per share, nearly a whole dollar more per share than the preceding years, and a subsequent doubling of Work-In-Progress inventory as shown in the company's notes to consolidated financial statements, it might be possible that sales for Neenah are expected to increase over the next few months or a year, resulting in a devaluation of the stock as long as the price remains the same.
An increase in the stock's price would only be natural, as much as a price of around $34.50 per share, as some analysts are predicting. It would not be terribly surprising if the price continued to go higher even still, as the stock will have broken through its 52-week high and several projected price pivot points.
Find more stocks on the SpeculatingStocks homepage.
Comments:
|
|
