- The talk of Wall Street is all shortages now, especially natural gas, so we've started to scrutinize our own portfolio and make sure we aren't carrying excessive risks.
- Suzano has become one of our larger holdings due to the fact that fiber remains structurally abundant, while pulp manufacturing facilities aren't despite high demand.
- The price of Suzano has been trading down a lot lately, and we think it relates to jitters around the situation in energy.
- In our estimation, energy should remain a limited input cost for Suzano, and we don't think the ballooning in natural gas prices, a main energy input, will matter for the bottom line.
- Overall, as the price drops, we become more bullish on Suzano.
For further details see:
Suzano: Exposure To Natural Gas Price Increases Is Limited, A Buy On Sustained Highs By Pulp