Materials

Report by Sidoti & Company

SLVM's singular focus on the uncoated freesheet market positions it to gain from capacity rationalisation while strengthening its competitive edge through high-return capital projects. In the 3 years of operations since its spinoff from International Paper, SLVM has generated a total shareholder return of 150% and adjusted FCF of $920m, while debt has fallen $725m. The company has a top-tier management team driving its long-term strategy and despite the secular decline in UFS, Sidoti expects SLVM will continue to reinvest in its business to grow cash flow and earnings. TP $93 (45% upside).

Materials

Report by Smart Insider

Spun-out from International Paper Company last month, John Sims (CFO) and Gregory Gibson (Senior VP) have wasted no time in materially boosting their stakes - John Sims purchased $646,000 of stock at $30.46, increasing his holding by 44%. He previously made six non-option sells of IPC in the four years prior to the spin-out and never made a purchase. Gregory Gibson purchased $574,000 of stock on the same day, increasing his holding by 80%. These large purchases shortly after the spin-out are very encouraging. Stock Ranking +1 (highest rating).