- We sold Suzano at recent highs at the Value Lab, where a couple of principled thoughts made us think that the good times might be coming to a temporary end.
- Everything runs in cycles, especially cyclicals, and with pulp prices maintaining and even moving ahead of highs, we worry that economic woes may be the incidence for reversal.
- Suzano remains a good opportunity, with deleveraging coming along nicely, and with a great margin of safety, but earning almost 30% on any cyclical at cycle highs should be prioritised.
For further details see:
Time To Rotate Out Of Suzano