What: Shares of KapStone Paper and Packaging Corp. (NYSE:KS) jumped as much as 15% today after the company came to an agreement with the union at one of its plants.
So what: Management agreed to an offer from the Association of Western Pulp and Paper Workers Union Local 153 to end a strike that began on Aug. 27. The company has begun planning to bring workers back and expects to be at full employment and production in about a week.
Now what: This really just takes uncertainty out of KapStone Paper's business, and given the short length of the strike, I wouldn't expect any negative financial impact. Management said when the strike started that it would be performing maintenance while workers were striking and had enough inventory to meet customers' needs. With this strike in the rearview mirror and shares trading at just 10 times forward earnings, I think there's a solid future ahead for this stock.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.