Analysis on GARP with strong economic moats, Moat Investing

Moat Investing

We are a group of experienced investors that like to dig deeper into stocks to find growth stories at a reasonable price with strong economic moats. We also aim to conduct high-quality analysis by doing deep dive on valuations, key business drivers, risk/reward, and different future scenarios.

Analysis on GARP with strong economic moats

GARP with strong economic moats

Equity Bottom-Up

<ul><li>International Paper is selling its 19.9% stake in Sylvamo. We believe Sylvamo is currently mispriced.</li><li>The priority of Sylvamo is to lower debt and then to return capital to shareholders.</li><li>Dividends and share buybacks are the catalysts expected to unlock value.</li><li>Sylvamo is under temporary selling pressure, which, with other contributing factors, has resulted in a share price far under fair value implied by our calculations.</li></ul>

International Paper is selling its 19.9% stake in Sylvamo. We believe Sylvamo is currently mispriced.The priority of Sylvamo is to lower debt and then to return capital to shareholders.Dividends and share buybacks are the catalysts expected to unlock value.Sylvamo is under temporary selling pressure, which, with other contributing factors, has resulted in a share price far under fair value implied by our calculations.

Sylvamo: Sell-Off Opens Up Opportunity For Bargain Purchase