Topic: How To Invest

Pat: Could I get your advice on envelope maker Supremex? Thanks.

Article Excerpt

Supremex, $5.45, symbol SXP on Toronto (Shares outstanding: 28.8 million; Market cap: $154.7 million; www.supremex.com), is a leading North American maker of envelopes, and also sells packaging and specialty products. The company has plants in seven Canadian provinces and two in the U.S. Supremex converted from an income trust to a conventional corporation on January 1, 2011. In 2011, the company had revenue of $143.9 million. That fell to $131.9 million in 2013, and to $129.0 million in 2014. The main reason was a steady decline in the use of envelopes by businesses and by individuals (due to email and the Internet), especially in Canada. Supremex reported sales of $142.3 million in 2015. The main reason for the rebound was the company’s expansion into the U.S., combined with a rising U.S. dollar. On October 8, 2015, Supremex acquired Classic Envelope Inc., a manufacturer of envelopes and letterhead based in Massachusetts and serving the greater Boston and New York City areas…