Daily Stock Pick: Glatfelter

This week, I'm looking for the fourth materials sector representative of nine for my Ivy portfolio.

That materials sector has thirteen industries all related to mining, making, and delivering essential commodities. They are: agricultural inputs; aluminum; building materials; chemicals; coal; copper; industrial metals; gold; paper; silver; specialty chemicals; steel.

Today I'm reviewing another small-cap paper and paper products company, named P.H. Glatfelter Co. Its trading ticker symbol is GLT.

P.H. Glatfelter Co makes and sells a variety of paper, fiber products, and nonwoven materials. The specialty paper segment, which generates the majority of revenue, sells paper used for printing, envelopes, book publishing, greeting cards, and packaging.

The composite fibers segment sells single-serve tea and coffee filtration paper, wall paper, and specialty papers including substrates for electrical applications.

The advanced airlaid materials segment sells feminine hygiene and adult incontinence products as well as wipes and other airlaid applications. The majority of revenue comes from the United States.

P. H. Glatfelter Company markets its products directly, as well as through brokers and agents. The company was founded in 1864 and is headquartered in York, Pennsylvania.

I use three key data points to gauge the value of any dividend equity-like P.H. Glatfelter Co:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

Those first three primary keys, however, best tell whether a company has made, is making, and will make money.

GLT Price

GLT's price per share closed at $13.93 yesterday. A year ago its price was $21.89. Price fell $7.96 or over 36% in the past year.

Assuming GLT's stock trades in the range of $10 to $24 this year, GLT's recent $13.93 price could rise by $2.07 and go to $16.00 by mid-March, 2020.

GLT Dividends

GLT's most recent Quarterly dividend was $0.13 declared February 21st and payable May 1st.

That $0.13 Q dividend equates to a  $0.52 annual payout and a yield of 3.73% at yesterday's $13.93 closing price.

Gains For GLT?

Adding the $0.52 annual estimated dividend to my $2.07 estimate of GLT's price upside shows a $2.59 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

Say we put a little over $1,000.00 today at the $13.93 recent stock price would buy us 72 P.H. Glatfelter Co shares.

A $10 broker fee paid half at purchase and half at sale costs $0.14 per share.

Subtract that $0.14 brokerage cost from the estimated $2.59 gross annual gain leaves a net gain of $2.45 X 72 shares

= $176.40 or 17.5% net gain on a $1,002.96 investment.

Therefore, P.H. Glatfelter Co whose trading ticker symbol is GLT now shows a possible net gain of 17.5% including a 3.73% dividend yield.

Three brokers cover this stock:

One says 'buy' GLT shares.

One says GLT shares will "outperform"

One says 'hold' your GLT shares.

Therefore, you can look at P.H. Glatfelter Co and see it has made money, is making money, and could throw a net gain of 17.5% including a 3.73% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. The actual results remain to be seen to determine if P.H. Glatfelter Co is worth your time and money.