UFS - Rayonier: Watch Closely Turnaround Incoming

• Rayonier Advanced Materials Inc. has restructured its business to focus on its core high-purity cellulose product line and development of related eco-friendly materials.
• The sale of its forest products and newsprint business dramatically improves its debt position and gives management options for useful capital expenditures.
• Management incentives are closely aligned to the company’s financial stability and to maximizing shareholder value.
• The major tailwinds include market leadership, increasing demand and margins; the only headwind seems to be a market-wide logistical friction in distribution channels.
• The stock is fairly valued by conservative estimates. Watch for insider buying in this turnaround.

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