Hewlett-Packard Company (HPQ), And How To Grab This Opportunity

The same verdant look is on Kadant Inc. (NYSE:KAI), which reported $7 million in cash flow from its continuing operations in the 2013 first quarter, a significant increase from the $4 million negative cash flow in the year-earlier period. It also received $90 million bookings in the 2013 first quarter, up 16% from a year ago. Diluted EPS for the quarter amounted to $0.47, exceeding the company’s $0.32 to $0.34 guidance.

Kilmer’s final choice for the lovelier tree

Initiating action on either Boise Inc. (NYSE:BZ) or Kadant seems warranted, given their robust metrics, in addition to their strong market and industry presence. Several analysts, in fact, have buy ratings on both stocks.

Boise, which has a 52-week range of $6.39 to $9.18 and which is trading in the $7.66 to $8.85 band in April, has a P/E ratio of about 15.4. The cheaper option is Kadant Inc. (NYSE:KAI) with its 9.9 P/E ratio.

It traded between $24.15 and $26.98 throughout much of April and has a 52-week high/low of $28.74 and $20.50, respectively. Hence, if value investing had been Joyce Kilmer’s forte too, in addition to poetry, Kadant could be his pick for the lovelier tree.

The article Seizing the Opportunity in Paper originally appeared on Fool.com.

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