Clearwater Paper (CLW) Higher as Cohen's SAC Capital Says Co. in 'Undervalued'
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In a 13D filing on Clearwater Paper (NYSE: CLW), Steven A. Cohen's hedge fund SAC Capital disclosed a 7.2%, or 1,640,000 share, stake in the company. This is up 8.81% from the 1,507,179 shares held at the end of the latest quarter ending December 31, 2011.
In addition, the firm sent a letter to Clearwater's CEO, which is sending shares higher Wednesday:
"Investment funds managed by S.A.C. Capital Advisors, L.P. and its affiliates currently beneficially own over 7% of the outstanding common stock of Clearwater Paper Corporation (“Clearwater” or “the Company”). We have followed the Company for many years and have been a significant shareholder for most of the past 12 months. Through our research and diligence, we have gained an appreciation for the exceptional quality of the Company’s assets and are excited for the future prospects of the business.
However, as we have highlighted to you and your team in past conversations, we believe Clearwater is deeply undervalued by the public markets. Despite the high quality assets and long-term secular tailwinds, we believe the Company’s public market valuation is being undermined by several issues, including uncertainty and volatility created by the acquisition of Cellu Tissue, a lack of visibility on financial performance, and uncertainty about the Shelby expansion due to the Metso Paper USA litigation.
We believe the Clearwater management team and board of directors have a variety of options to address these issues and realize tremendous shareholder value. We look forward to continuing our dialogue with you about these and other general strategic matters."
For more on the letter and valuation, click here.
For more notable holders of Clearwater Paper stock click here. For more information on SAC Capital click here.
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In addition, the firm sent a letter to Clearwater's CEO, which is sending shares higher Wednesday:
"Investment funds managed by S.A.C. Capital Advisors, L.P. and its affiliates currently beneficially own over 7% of the outstanding common stock of Clearwater Paper Corporation (“Clearwater” or “the Company”). We have followed the Company for many years and have been a significant shareholder for most of the past 12 months. Through our research and diligence, we have gained an appreciation for the exceptional quality of the Company’s assets and are excited for the future prospects of the business.
However, as we have highlighted to you and your team in past conversations, we believe Clearwater is deeply undervalued by the public markets. Despite the high quality assets and long-term secular tailwinds, we believe the Company’s public market valuation is being undermined by several issues, including uncertainty and volatility created by the acquisition of Cellu Tissue, a lack of visibility on financial performance, and uncertainty about the Shelby expansion due to the Metso Paper USA litigation.
We believe the Clearwater management team and board of directors have a variety of options to address these issues and realize tremendous shareholder value. We look forward to continuing our dialogue with you about these and other general strategic matters."
For more on the letter and valuation, click here.
For more notable holders of Clearwater Paper stock click here. For more information on SAC Capital click here.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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13Ds, Hedge Funds, Momentum MoversRelated Entities
SAC Capital, Steven A. Cohen, Hedge Funds, 13D
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