BLRDY - Billerud: I Now See A Difficult Medium-Term Forecast (Downgrade)
2024-04-01 21:05:16 ET
Summary
- Billerud, a packaging company, no longer has significant upside due to weak sales volume, pricing pressure, and dependence on the market for input.
- The company's dividend proposal has been cut by over 50%, making it less attractive for investors.
- The US segment is a major issue for Billerud, with weak top-line volume development and price erosion.
Dear readers/followers,
In this article, I'll show you a company that embodies very clearly what I see as the absolutely crucial importance of company valuation. The last time I wrote on Billerud ( OTCPK:BLRDY ) ( OTC:BLRDF ), I was at a "BUY". This article was published back in September of last year, and you can find that specific article here.
This is a company I've actually covered for a number of years - and this article will mark a change in my outlook on Billerud - and not to the positive side. I have, since my last article, sold my position in Billerud at a decent, double-digit profit. But the company no longer has the sort of upside that I expect from an investment I make....
Billerud: I Now See A Difficult Medium-Term Forecast (Downgrade)