Consolidated Papers Inc. is a well established company that specializes in coated paper. It has little or no debt. In the last nine months, prices for coated paper have risen dramatically. This price increase may not translate directly to the bottom line because Consolidated purchases 30% of its wood pulp used in the manufacture of its coated paper. Pulp prices have risen at least as dramatically in the last year. Notwithstanding, Consolidated Papers Inc. is a very solid investment and I expect an investment will produce a compound annual rate of return of 10 to 15% over the next three years.
Kimberly-Clark Corp. is also a well established company that specializes in personal care and cleaning products. Kimberly-Clark Corp. has interests in all corners of the globe. With the exception of 1992, Kimberly-Clark has maintained or improved its profitability through this last recession. Kimberly-Clark owns some well established trademarks in the personal care and cleaning products industry. I believe Kimberly-Clark is currently undervalued and I expect an investment will produce a compound annual rate of return of 12 to 17% over the next three years.
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