KLBN4:SAO - Klabin SA

[Voodooking]

Klabin S.A. and its subsidiaries operate in segments of the paper and pulp industry, supplying the domestic and foreign markets with wood, packaging paper, paper sacks, corrugated cardboard boxes and pulp. The Company's segments include Forestry, Paper, Conversion and Pulp. The Forestry segment involves operations relating to planting and growing pine and eucalyptus trees to supply its plants, and involves selling timber to third parties in the domestic market. The Paper segment involves the production and sale of cardboard, kraftliner and recycled paper rolls in the domestic and foreign markets. The Conversion segment involves the production and sale of corrugated cardboard boxes, corrugated cardboard and industrial sacks in the domestic and foreign markets. The Pulp segment includes the production and sale of short fiber bleached pulp, long fiber bleached pulp and fluff pulp in the domestic and foreign markets. The Company has over 20 industrial units in Brazil and Argentina.

 

Price (BRL) = 2.67

P/E = 1.12

Div. Yield = 3.31%

Gross margin = 26.28%

Return on assets = 8.93%

Tangible book value per share = 7.63

Current ratio = 2.40

 

This company appeared on one of my screeners once, and I keep re-visiting it every so often. I did a bit of background research into the company and I just love it. They have just finished building an amazing new main plant in Brazil, and I see lots of potential for future growth and it looks really attractive to me as a buy and hold.

 

The only issue I have is that it's in Brazil and I've never bought a stock there and don't know how easy it would be to go about doing so. Can anyone with any experience help me out here?

 

Also, anything I've missed that might not make it so attractive after all?

[benhacker]

In Brazil, what is the structural difference between Ordinary shares and Preferred.

 

The price you are quoting is for the Preferred... the Ordinaries trade ~80% higher... at least if my data feed is named properly.

 

Cheers,

[writser]

There appears to be an ADR (KLBAY) with decent volume, maybe you can buy that?

[snow pea]

In addition to the ordinary shares series Ben pointed out, there also seem to be a goodly number of mandatory convertible debentures that look to be convertible into a lot more ordinary and preferred shares that show as currently outstanding.  Thus I think the per share values at fully diluted levels may be substantially less attractive than you have indicated, though I haven't rigorously confirmed this.