Over the past few weeks The Globe and Mail‘s Report on Business section has been taking a look at company stocks that tend to do well in the early stages of an economic rebound. According to Globe and Mail analysts, microcap companies – publicly traded companies that have a market capitalization of roughly US$250 million or less – tend to thrive in these post-crisis conditions.
This week, The Globe and Mail selected Fortress Paper as a microcap company poised to do big things in the coming months:
Fortress Paper Ltd., which has mills in Germany and Switzerland, makes security (such as currency notes) and specialty papers as well as wallpaper.
“It definitely has above-average profitability compared to other businesses that operate in the pulp-and-paper segment,” said Ralph Lindenblatt of Bissett Investment Management, a unit of Franklin Templeton Investments Corp.
“They have a proven management team, a self-sustaining business plan, strong balance sheet and opportunities to grow the business.”
The stock is “very attractively valued,” trading at 11 times trailing earnings, he added.